Southern Highlands

Population growth drivers in Southern Highlands are strong compared to national averages based on AreaSearch's ranking of recent, and medium to long-term trends

Based on AreaSearch's analysis, Southern Highlands's population is around 7,432 as of Feb 2026. This reflects an increase of 182 people (2.5%) since the 2021 Census, which reported a population of 7,250 people. The change is inferred from the estimated resident population of 7,358 from the ABS as of June 2024 and an additional 112 validated new addresses since the Census date. This population level equates to a density ratio of 5.3 persons per square kilometer, providing ample space per person. Over the past decade, Southern Highlands has demonstrated resilient growth patterns with a 1.2% compound annual growth rate, outpacing the SA4 region. Population growth for the area was primarily driven by overseas migration, which contributed approximately 62.4% of overall population gains during recent periods.

AreaSearch is adopting ABS/Geoscience Australia projections for each SA2 area, as released in 2024 with 2022 as the base year. For any SA2 areas not covered by this data, AreaSearch is utilising the NSW State Government's SA2 level projections, as released in 2022 with 2021 as the base year. Growth rates by age group from these aggregations are also applied to all areas for years 2032 to 2041. As we examine future population trends, an above-median population growth for national regional areas is projected, with the area expected to grow by 1,298 persons to 2041 based on the latest annual ERP population numbers, reflecting an increase of 16.5% in total over the 17 years.

Recent residential development output has been above average within Southern Highlands when compared nationally

Southern Highlands has recorded around 59 residential properties granted approval annually, with 295 homes approved over the past 5 financial years (between FY-21 and FY-25) and 26 so far in FY-26. At an average of 1 new resident per year arriving per new home over the past 5 financial years (between FY-21 and FY-25), supply and demand appear well-balanced, creating stable market conditions, while new homes are being built at an average value of $521,000, revealing that developers are targeting the premium market segment with higher-end properties. Additionally, $1.8 million in commercial approvals have been registered this financial year, suggesting a predominantly residential focus.

Compared to the rest of NSW, Southern Highlands shows moderately higher development activity (26.0% above regional average per person over the 5 year period), maintaining good buyer choice while supporting existing property values, though development activity has moderated in recent periods. New development consists of 88.0% standalone homes and 12.0% attached dwellings, maintaining the area's traditional low density character with a focus on family homes appealing to those seeking space. The location has approximately 196 people per dwelling approval, indicating a low density market.

Population forecasts indicate Southern Highlands will gain 1,224 residents through to 2041 (from the latest AreaSearch quarterly estimate). At current development rates, new housing supply should comfortably meet demand, providing good conditions for buyers and potentially supporting growth beyond current population projections.

Southern Highlands has moderate levels of nearby infrastructure activity, ranking in the 44thth percentile nationally

Nothing can influence an area's performance as much as changes to local infrastructure, major projects, and planning initiatives. In total, 24 projects have been identified by AreaSearch that are likely to have an impact on the area. Key projects include the Bundanoon Village Place Plan, Southern Highlands Innovation Park, Moss Vale Bypass, and Moss Vale Station and Stabling Yard Upgrade, with the list below detailing those likely to be of most relevance.

Professional plan users can use the search below to filter and access additional projects.

Denotes AI-based impression for illustrative purposes only, not to be taken as definitive under any circumstances. Please follow links and conduct other investigations from the project's source for actual imagery. Developers and project owners wishing us to use original imagery please Contact Us and we will do so.

AreaSearch analysis of employment trends sees Southern Highlands performing better than 90% of local markets assessed across Australia

Southern Highlands features a well-educated workforce, with the construction sector a particular standout in terms of representation, an unemployment rate of just 0.8%, and 2.2% in estimated employment growth over the past year. As of December 2025, 3,543 residents are in work while the unemployment rate is 3.1% below Regional NSW's rate of 3.9%, and workforce participation is somewhat below standard (56.6% compared to Regional NSW's 61.3%). Based on Census responses, a high 30.5% of residents were found to work from home, though Covid-19 lockdown impacts should be considered.

The key industries of employment among residents are construction, health care & social assistance, and professional & technical. The area has a particular employment specialization in professional & technical, with an employment share of 1.8 times the regional level. In contrast, health care & social assistance employs just 12.3% of local workers, below Regional NSW's 16.9%. The area appears to offer limited employment opportunities locally, as indicated by the count of the Census working population versus the resident population.

Based on AreaSearch analysis of SALM and ABS data, the 12-month period saw employment increasing by 2.2% alongside the labour force increasing by 2.5%, causing the unemployment rate to rise by 0.4 percentage points. This contrasts with Regional NSW, where employment contracted by 1.2%, the labour force fell by 0.8%, and unemployment rose 0.4 percentage points. Jobs and Skills Australia's national employment forecasts from May-25 can offer further insight into potential future demand within Southern Highlands. These projections, covering five and ten-year periods, have been mapped against the local employment profile to estimate growth patterns. While national employment is forecast to expand by 6.6% over five years and 13.7% over ten years, growth rates differ significantly between industry sectors. Applying these industry-specific projections to Southern Highlands's employment mix suggests local employment should increase by 6.3% over five years and 13.1% over ten years (please note this is a simple weighting extrapolation for illustrative purposes and does not take into account localised population projections).

Income levels sit below national averages according to AreaSearch assessment

The Southern Highlands SA2's income level is higher than average nationally according to the latest ATO data aggregated by AreaSearch for FY-23. The Southern Highlands SA2's median income among taxpayers is $48,955 and the average income stands at $73,010, which compares to figures for Regional NSW's of $52,390 and $65,215 respectively. Based on Wage Price Index growth of 8.86% since FY-23, current estimates would be approximately $53,292 (median) and $79,479 (average) as of September 2025. From the 2021 Census, household, family and personal incomes all rank modestly in Southern Highlands, between the 39th and 39th percentiles. Income analysis reveals the $1,500 - 2,999 bracket dominates with 27.8% of residents (2,066 people), aligning with the region where this cohort likewise represents 29.9%. Housing costs are manageable with 86.7% retained, though disposable income sits below average at the 43rd percentile and the area's SEIFA income ranking places it in the 7th decile.

Southern Highlands is characterized by a predominantly suburban housing profile, with above-average rates of outright home ownership

Dwelling structure within Southern Highlands, as evaluated at the latest Census, comprised 98.0% houses and 2.0% other dwellings (semi-detached, apartments, 'other' dwellings), in comparison to Regional NSW's 82.6% houses and 17.4% other dwellings. Meanwhile, the level of home ownership within Southern Highlands was well beyond that of Regional NSW, at 54.6%, with the remainder of dwellings either mortgaged (32.6%) or rented (12.8%). The median monthly mortgage repayment in the area was well above the Regional NSW average at $2,108, while the median weekly rent figure was recorded at $400, compared to Regional NSW's $1,733 and $330. Nationally, Southern Highlands's mortgage repayments are significantly higher than the Australian average of $1,863, while rents are exceeding the national figure of $375.

Southern Highlands has a typical household mix, with a fairly typical median household size

Family households dominate at 72.9% of all households, comprising 25.3% couples with children, 39.4% couples without children, and 7.9% single parent families. Non-family households make up the remaining 27.1%, with lone person households at 25.0% and group households comprising 1.9% of the total. The median household size of 2.4 people matches the Regional NSW average.

The educational profile of Southern Highlands exceeds national averages, with above-average qualification levels and academic performance metrics

Educational attainment in the Southern Highlands significantly surpasses broader benchmarks, with 32.4% of residents aged 15+ holding university qualifications compared to 21.3% in the Rest of NSW and 22.4% in the SA4 region. This substantial educational advantage positions the area strongly for knowledge-based opportunities. Bachelor degrees lead at 21.1%, followed by postgraduate qualifications (7.9%) and graduate diplomas (3.4%). Trade and technical skills feature prominently, with 38.5% of residents aged 15+ holding vocational credentials, including advanced diplomas (12.5%) and certificates (26.0%).

Educational participation is notably high, with 26.0% of residents currently enrolled in formal education. This includes 9.2% in primary education, 7.5% in secondary education, and 3.4% pursuing tertiary education.

Transport servicing is low compared to other areas nationally based on assessment of service frequency, route connectivity and accessibility

Public transport analysis reveals 208 active transport stops operating within Southern Highlands, comprising a mix of trains and buses. These stops are serviced by 29 individual routes, collectively providing 836 weekly passenger trips. Transport accessibility is rated as good, with residents typically located 267 meters from the nearest transport stop. As a primarily residential area, most residents commute outward; the car remains the dominant mode at 92%, with 5% walking. Vehicle ownership averages 1.7 per dwelling, which is above the regional average. A high 30.5% of residents work from home (2021 Census; may reflect COVID-19 conditions).

Service frequency averages 119 trips per day across all routes, equating to approximately 4 weekly trips per individual stop. The accompanying map shows the 100 nearest stops to the location centrepoint.

Southern Highlands's residents are healthier than average in comparison to broader Australia with prevalence of common health conditions quite low across both younger and older age cohorts

Health data indicates relatively positive outcomes for Southern Highlands residents. AreaSearch's analysis of mortality rates and health conditions shows results broadly in line with national benchmarks, with the prevalence of common health conditions remaining low across both younger and older age cohorts. The rate of private health cover is very high at approximately 55% of the total population (~4,117 people), compared to 51.9% across Regional NSW.

The most common medical conditions in the area are arthritis and asthma, impacting 11.0% and 7.2% of residents, respectively, while 64.7% declared themselves completely clear of medical ailments compared to 63.3% across Regional NSW. Health outcomes among the working-age population are broadly typical. The area has 31.4% of residents aged 65 and over (2,335 people), which is higher than the 23.4% in Regional NSW. Health outcomes among seniors are particularly strong, with national rankings even higher than those of the general population.

Southern Highlands ranks below the Australian average when compared to other local markets across a number of language and cultural background related metrics

The Southern Highlands was found to be below average in terms of cultural diversity, with 81.1% of its population born in Australia, 89.8% being citizens, and 94.8% speaking English only at home. The main religion in the Southern Highlands is Christianity, which makes up 56.8% of the population. This compares to 55.9% across Regional NSW.

In terms of ancestry (country of birth of parents), the top three represented groups in the Southern Highlands are English, comprising 31.7% of the population, Australian, comprising 27.7% of the population, and Scottish, comprising 10.7% of the population. Additionally, there are notable divergences in the representation of certain other ethnic groups: Hungarian is notably overrepresented at 0.4% of the Southern Highlands (vs 0.2% regionally), Irish at 10.3% (vs 8.8%) and Welsh at 0.6% (vs 0.5%).

Southern Highlands ranks among the oldest 10% of areas nationwide

With a median age of 53, Southern Highlands is considerably higher than the Regional NSW figure of 43 and substantially exceeds the national norm of 38. Relative to Regional NSW, Southern Highlands has a higher concentration of 65 - 74 residents (16.9%) but fewer 25 - 34 year-olds (6.6%). This 65 - 74 concentration is well above the national 9.5%. Since the 2021 Census, the 75 to 84 age group has grown from 9.7% to 11.6% of the population, while the 35 to 44 cohort increased from 8.9% to 10.3%. Conversely, the 65 to 74 cohort has declined from 18.5% to 16.9%. Looking ahead to 2041, demographic projections reveal significant shifts in Southern Highlands's age structure. Leading the demographic shift, the 45 to 54 group will grow by 30% (268 people), reaching 1,151 from 882. Meanwhile, the 55 to 64 cohort grows by a modest 2% (25 people).