"State of Australian Cities is an important evidence base on which government can build policy to improve the productivity, sustainability and liveability of Australia's urban communities.
"As Lord Mayors we are delighted to see the Federal Government deliver on its promise to provide annual updates of the State of Australian Cities report. Refreshing this information and tracking change is vital.
"Already, just 18 months since the first report was released we can see significant change, notably a growth in household size, reversing almost two decades of decline, and continuing reductions in vehicle travel and energy consumption.
"These results reflect cities which are facing poor housing affordability as demand for dwellings continues to outstrip supply, and cities which are benefiting from investment in public and active transport and efforts to improve energy efficiency.
Lord Mayor Valentine also welcomed the Federal Government's call for applications for its $20 million Liveable Cities Program.
"The State of Australian Cities gives us the information to inform policy; the Liveable Cities Program gives us the dollars to act," Lord Mayor Valentine said.
"Of course we'd like to see a much bigger Federal financial commitment towards improving our cities. We'd also like to see bi-partisan support federally for our national government to be engaged in urban policy for the long term.
"We strongly welcome Minister Albanese's assurances that today's $20 million is only a start, and that the Gillard Government is committed to maintaining strong Federal Government involvement and investment in Australia's cities. We seek similar assurances from the Federal Coalition.
"Today's developments mark an important step towards greater cooperation and partnering between Australia's three levels of government to improve our cities to improve the livelihoods of Australians."