This paper explores the redevelopment potential of ageing and underutilised public housing properties in the middle suburbs of major Australian cities. State governments lack strategies for the renewal of this housing in the current fiscally constrained environment. Responding to this need, this paper presents a design research project that proposes a coordinated, precinct-based regeneration strategy that involves the redevelopment of clusters of public housing lots that are in close proximity to each other. It demonstrates how such a precinct-scaled approach can produce a greater diversity of housing types that achieve higher yields as well as better quality urban amenity and infrastructure. This is in contrast to the inefficient, piecemeal infill housing development currently prevalent in middle suburban areas. The paper describes the results of developing and testing this design research proposal. A mapping survey of the Victorian Government's public housing portfolio found that around 25% of assets form precinct scale clusters of renewable stock in well-serviced middle suburbs. Integrative redevelopment strategies were formulated for selected localised clusters, including customised arrangements of density, uses, parking and dwelling types. At the same time, targeted public realm enhancements were developed to encourage existing community assets to 'work harder'. These strategies were trialled and developed through innovative design-led community engagements, and then formalised into detailed design scenarios that enabled the testing of short and long-term viability relative to 'status quo' development models. The results of this analysis indicate how the quantity and distribution of public housing stock presents a timely opportunity for broader regeneration of ageing middle suburbs -recognised as vital to achieving sustainable metropolitan housing growth and diversity within equitable and liveable cities. Finally, this paper examines the role for community housing organisations in leveraging public investment in regeneration while preserving affordability in key areas.