Since the mid-1990s, Melbourne has maintained significant population and employment growth, bolstered by international investment in industries and the property market. Major inner-city urban renewal projects transformed areas such as Southbank, Port Melbourne, Melbourne Docklands, and South Wharf, helping Melbourne achieve the highest population and economic growth rate of any Australian capital city between 2001 and 2004.

From 2006, city growth extended into “green wedges” and beyond Melbourne’s urban growth boundary. Anticipated population projections of 5 million prompted the state government to review these boundaries under the Melbourne @ Five Million strategy in 2008. During the 2009 global financial crisis, Melbourne fared comparatively well, creating more new jobs than any other Australian city and maintaining a high-property market, leading to historically high housing prices and widespread rent increases.

In the 2010s, Victoria’s government initiated major infrastructure projects to reduce congestion and encourage economic development. Key projects include the Metro Tunnel, West Gate Tunnel, Level Crossing Removal Project, and Suburban Rail Loop. New urban renewal zones emerged in inner-city areas like Fisherman’s Bend and Arden, while suburban expansion continued in outer suburbs such as Wyndham Vale and Cranbourne. Middle suburbs, including Box Hill, became denser as apartment living grew more popular. Between 2010 and 2020, 34 new skyscrapers were constructed in the central business district, reflecting Melbourne’s vertical growth. In 2020, the city was classified as an Alpha city by the Globalization and World Cities Research Network, cementing its international status.

The COVID-19 pandemic severely impacted Melbourne, which experienced six lockdowns totaling 262 days, the longest of any Australian city. This period contributed to a temporary net outflow of residents and a slight population decline between 2020 and 2022. Despite these challenges, Melbourne’s population is projected to reach 6.4 million by 2033–34, maintaining its trajectory as a major global city and dynamic hub of culture, business, and innovation.