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

Southern Highlands' population was 7,465 as of May 2026, according to AreaSearch's analysis. This figure represents a 3.0% increase from the 2021 Census count of 7,250 people. The population estimate for June 2025 was 7,453, with an additional 126 validated new addresses since the Census date contributing to this growth. This results in a population density of 5.3 persons per square kilometer. Southern Highlands' growth rate exceeded that of the SA3 area (2.6%), making it a regional growth leader. Interstate migration accounted for approximately 69.2% of overall population gains during recent periods.

AreaSearch uses ABS/Geoscience Australia projections for each SA2 area, released in 2024 with a base year of 2022. For areas not covered by this data, NSW State Government's SA2 level projections from 2022 (base year: 2021) are utilized. Growth rates by age group from these aggregations are applied to all areas for years 2032 to 2041. Future population trends project an above median growth for the area, with an expected increase of 1,238 persons to 2041, reflecting a total increase of 16.4% over the 16-year period based on the latest annual ERP population numbers.

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

Southern Highlands recorded approximately 59 residential properties approved annually. Between financial years FY-21 and FY-25, around 295 homes were granted approval, with an additional 34 approved in FY-26 so far. On average, about one new resident arrived per year for each new home over the past five financial years.

This suggests a balanced supply and demand dynamic, maintaining stable market conditions. The average value of new homes being built was approximately $521,000, indicating developers are targeting the premium market segment with higher-end properties. In FY-26, around $1.8 million in commercial approvals have been registered, reflecting a predominantly residential focus compared to other regions.

Compared to Rest of NSW, Southern Highlands exhibited moderately higher development activity over the past five years, with 26.0% more approvals per person than the regional average. This has maintained good buyer choice while supporting existing property values. However, development activity has shown some moderation in recent periods. New developments primarily consist of standalone homes (88.0%) and attached dwellings (12.0%), preserving the area's traditional low-density character with a focus on family homes. The location currently has approximately 196 people per dwelling approval, indicating a low-density market. According to AreaSearch's latest quarterly estimate, Southern Highlands is projected to gain around 1,226 residents by 2041. At current development rates, new housing supply should comfortably meet demand, providing good conditions for buyers and potentially supporting population growth beyond current projections.

Southern Highlands has moderate levels of nearby infrastructure activity, ranking in the 41stth percentile nationally

Changes to local infrastructure significantly impact an area's performance. AreaSearch has identified 24 projects that could affect the region. Notable initiatives include Bundanoon Village Place Plan, Southern Highlands Innovation Park (SHIP), Moss Vale Bypass, and Moss Vale Station and Stabling Yard Upgrade. The following list details those most likely to be relevant.

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 has a well-educated workforce with notable representation in the construction sector. Its unemployment rate was 0.8% as of December 2025, with an estimated employment growth of 2.2% over the past year. In December 2025, 3,543 residents were employed, while the unemployment rate was 3.1%, below Regional NSW's 3.9%.

Workforce participation in Southern Highlands was 55.8%, compared to Regional NSW's 60.5%. According to Census responses, 30.5% of residents worked from home, potentially influenced by Covid-19 lockdowns. Key industries for employment among residents are construction, health care & social assistance, and professional & technical services. Southern Highlands has a high specialization in professional & technical services, with an employment share 1.8 times the regional level.

However, health care & social assistance employs only 12.3% of local workers, below Regional NSW's 16.9%. The area appears to offer limited local employment opportunities, as indicated by the count of Census working population versus resident population. In the 12-month period ending in December 2025, employment increased by 2.2%, while labour force increased 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 by 0.4 percentage points. Jobs and Skills Australia's national employment forecasts from May-25 project national employment growth of 6.6% over five years and 13.7% over ten years. Applying these projections to Southern Highlands' employment mix suggests local employment should increase by 6.3% over five years and 13.1% over ten years, though this is a simple extrapolation for illustrative purposes and does not account for localised population projections.

Income levels sit below national averages according to AreaSearch assessment

The Southern Highlands SA2 had higher than average national income levels according to AreaSearch aggregated ATO data for financial year 2023. The median income among taxpayers was $48,955 and the average income stood at $73,010, compared to Regional NSW's figures of $52,390 and $65,215 respectively. By March 2026, current estimates based on Wage Price Index growth of 10.32% would be approximately $54,007 (median) and $80,545 (average). From the 2021 Census, household, family and personal incomes all ranked modestly in Southern Highlands, between the 39th and 39th percentiles. Income analysis showed that the $1,500 - 2,999 bracket dominated with 27.8% of residents (2,075 people), aligning with the region where this cohort likewise represented 29.9%. Housing costs were manageable with 86.7% retained, but disposable income was below average at the 43rd percentile and the area's SEIFA income ranking placed it in the 7th decile.

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

Southern Highlands' dwelling structures, as per the latest Census, consisted of 98.0% houses and 2.0% other dwellings (semi-detached, apartments, 'other' dwellings). This contrasts with Regional NSW's 82.6% houses and 17.4% other dwellings. Home ownership in Southern Highlands stood at 54.6%, with the rest being mortgaged (32.6%) or rented (12.8%). The median monthly mortgage repayment was $2,108, higher than Regional NSW's average of $1,733. Median weekly rent in Southern Highlands was $400, compared to Regional NSW's $330. Nationally, Southern Highlands' mortgage repayments exceeded the Australian average of $1,863, while rents were higher than the national figure of $375.

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

Family households account for 72.9% of all households, including 25.3% couples with children, 39.4% couples without children, and 7.9% single parent families. Non-family households comprise the remaining 27.1%, with lone person households at 25.0% and group households making up 1.9% of the total. The median household size is 2.4 people, which 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 Southern Highlands is notably high, with 32.4% of residents aged 15 years and above holding university qualifications, compared to 21.3% in the Rest of NSW and 22.4% in the SA4 region. Bachelor degrees are the most common at 21.1%, followed by postgraduate qualifications (7.9%) and graduate diplomas (3.4%). Vocational credentials are also prevalent, with 38.5% of residents aged 15 years and above holding such qualifications, including advanced diplomas (12.5%) and certificates (26.0%). Educational participation is high, with 26.0% of residents currently enrolled in formal education, comprising 9.2% in primary education, 7.5% in secondary education, and 3.4% pursuing tertiary education.

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

Southern Highlands has 208 operational public transport stops offering a mix of train and bus services. These are covered by 29 unique routes, facilitating 836 weekly passenger trips in total. The area's transport accessibility is deemed good, with residents' average proximity to the nearest stop being 267 meters. Predominantly residential, most commuters travel outward. Car remains the primary mode of transport at 92%, while walking accounts for 5%. Vehicle ownership stands at an average of 1.7 per dwelling, exceeding the regional norm.

Notably, 30.5% of residents work from home (as per the 2021 Census; potentially influenced by COVID-19 conditions). On average, there are 119 trips daily across all routes, translating to roughly four weekly trips per individual stop. The accompanying map highlights the 100 stops nearest to the location's centerpoint.

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 shows Southern Highlands residents have relatively positive health outcomes. AreaSearch's analysis of mortality rates and health conditions indicates results broadly in line with national benchmarks.

The prevalence of common health conditions is quite low across both younger and older age cohorts. Approximately 55% (~4,135 people) of the total population has private health cover, compared to 51.9% across Regional NSW. The most common medical conditions are arthritis (11.0%) and asthma (7.2%). A total of 64.7% of residents declare themselves completely clear of medical ailments, compared to 63.3% in Regional NSW. Health outcomes among the working-age population are broadly typical. The area has 32.0% of residents aged 65 and over (2,389 people), which is higher than the 23.4% in Regional NSW. Health outcomes among seniors are particularly strong, with national rankings even higher than 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

Southern Highlands has a lower level of cultural diversity, with 81.1% of its residents born in Australia, 89.8% being citizens, and 94.8% speaking English only at home. Christianity is the predominant religion in Southern Highlands, making up 56.8% of the population, slightly higher than the Regional NSW average of 55.9%. The top three ancestry groups are English (31.7%), Australian (27.7%), and Scottish (10.7%).

Notably, Hungarian ancestry is overrepresented in Southern Highlands at 0.4%, compared to 0.2% regionally. Irish ancestry also stands out at 10.3%, higher than the regional average of 8.8%. Welsh ancestry is present at 0.6%, slightly above the regional average of 0.5%.

Southern Highlands ranks among the oldest 10% of areas nationwide

The median age of Southern Highlands is 53, which is considerably higher than Regional NSW's figure of 43 and substantially exceeds the national norm of 38. Relative to Regional NSW, Southern Highlands has a higher concentration of residents aged 65-74 at 17.1%, but fewer residents aged 25-34 at 6.7%. This 65-74 concentration is well above the national figure of 9.4%. Between the 2021 Census and present, the 75 to 84 age group has grown from 9.7% to 12.3%, while the 35 to 44 cohort increased from 8.9% to 9.9%. Conversely, the 65 to 74 cohort has declined from 18.5% to 17.1%, and the 45 to 54 group dropped from 12.8% to 11.6%. Looking ahead to 2041, demographic projections reveal significant shifts in Southern Highlands's age structure. The 45 to 54 group is projected to grow by 30%, adding 264 people and reaching a total of 1,132 from the current 867. Meanwhile, the 55 to 64 cohort is expected to grow modestly by 2%, adding 27 people.