City of Greater Bendigo told it needs 37,500 new homes by 2051

Councils have been told how many houses they need to make way for over the next 30 years to meet new draft targets.

In Greater Bendigo, 37,500 homes will need to be built by 2051, bringing the number of homes from 54,900 to 92,400.

Further south, the Macedon Ranges Shire council has been told it will need 12,700 houses, while the Campaspe Shire will need 4200 more houses and Mount Alexander Shire will need 4300.

Premier Jacinta Allan announced the new draft targets on Sunday, June 16, with the final numbers to be released by the end of the year.

The state government would listen to councils on proposed changes to local planning rules and "harness their local knowledge", the Premier said.

"To give industry the confidence they need to get on and build, we need government and all councils working towards the same goal: more homes for Victorians - in the right places," she said.

The targets were calculated on each region's proximity to jobs, access to public transport and environmental hazards such as flood and bushfire risk, according to the state government.

Smaller regional councils Loddon Shire and Buloke Shire will need 500 and 100 more respectively.

The outer-Melbourne shire of Mitchell, which includes the towns of Wallan and Seymour, will need to triple its housing stock, with a target of 68,000 houses to be built.

Across Victoria, Ballarat will need to build 46,900 new homes, Greater Shepparton 14,500 and Greater Geelong 139,800.

Many councils in Melbourne would double their number of new houses every year, the state government proposed.

Last year, former Premier Daniel Andrews revealed a plan to build 800,000 homes in the next 10 years in a 40-page housing statement.

Just last month the City of Greater Bendigo released its draft Managed Growth Strategy, which labelled the growth on Bendigo's outskirts "unsustainable" and called for 70 per cent of homes built in the region to be built in established areas.

Half of Greater Bendigo's homes are currently built in growth suburbs like Huntly, Marong, Maiden Gully and Strathfieldsaye, the draft strategy said.

Developers have also suggested undeveloped "southern gateway" towns such as Ravenswood could sustain a population of 10,000 people.