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 is approximately 7,415 as of November 2025. This marks an increase of 165 people, representing a 2.3% rise since the 2021 Census, which recorded a population of 7,250. This change was inferred from the estimated resident population of 7,358 in June 2024 and the validation of 104 new addresses post-Census date. The resulting population density is 5.3 persons per square kilometer. Over the past decade, Southern Highlands has maintained a compound annual growth rate of 1.2%, outperforming its SA4 region. Overseas migration contributed approximately 62.4% 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, AreaSearch employs NSW State Government's SA2 level projections, released in 2022 with a base year of 2021. Growth rates by age group are applied to all areas for years 2032 to 2041. Future population trends project an above-median growth for national regional areas, with Southern Highlands expected to grow by 1,298 persons to 2041 based on the latest annual ERP population numbers, reflecting a total increase of 16.7% over the 17 years.

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

Southern Highlands granted approval for approximately 59 residential properties annually. Over the past five financial years, from FY21 to FY25, around 295 homes were approved, with an additional 24 approved so far in FY26. On average, one new resident arrived per new home each year during these five years, suggesting balanced supply and demand.

The average construction cost of new homes was $521,000, indicating a focus on premium market properties. This financial year, $1.8 million in commercial approvals have been registered, reflecting a predominantly residential development trend. Compared to the rest of NSW, Southern Highlands exhibited moderately higher development activity, 26.0% above the regional average per person over the five-year period.

The area maintained good buyer choice while supporting existing property values, although recent periods showed some moderation in development activity. New developments consisted of 88.0% standalone homes and 12.0% attached dwellings, preserving the area's traditional low-density character with a focus on family homes. With approximately 196 people per dwelling approval, Southern Highlands has a low density market. According to AreaSearch's latest quarterly estimate, the population is forecasted to grow by 1,241 residents through to 2041. At current development rates, new housing supply should comfortably meet demand, providing favorable 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

Changes to local infrastructure significantly affect an area's performance. AreaSearch has identified 24 projects that could impact the region. Notable initiatives include Bundanoon Village Place Plan, Southern Highlands Innovation Park, Moss Vale Bypass, and Moss Vale Station and Stabling Yard Upgrade. The following list highlights 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 the construction sector being particularly prominent. Its unemployment rate is 0.7% as of September 2025. This rate is 3.1% lower than Rest of NSW's rate of 3.8%.

Employment growth in the area over the past year was estimated at 3.6%. There are 3,538 residents currently employed. Workforce participation stands at 56.5%, which is somewhat below Rest of NSW's 61.5%. According to Census responses, 30.5% of residents work from home, although Covid-19 lockdown impacts should be considered.

Key industries for employment among residents are construction, health care & social assistance, and professional & technical services. The area has a significant specialization in professional & technical services, with an employment share of 1.8 times the regional level. However, health care & social assistance employs only 12.3% of local workers, below Rest of NSW's 16.9%. Employment opportunities locally appear limited, as indicated by the count of Census working population versus resident population. Over a 12-month period ending in September 2025, employment increased by 3.6%, while labour force also increased by 3.6%, keeping unemployment broadly flat. This contrasts with Rest of NSW where employment contracted by 0.5%, the labour force fell by 0.1%, and unemployment rose by 0.4 percentage points. Jobs and Skills Australia's national employment forecasts from May-25 suggest that national employment will expand by 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, although these are simple extrapolations for illustrative purposes and do not account for localized population projections.

Income levels sit below national averages according to AreaSearch assessment

The Southern Highlands SA2 had a higher than average national income level according to AreaSearch's aggregation of latest ATO data for financial year 2023. The median income among taxpayers was $48,955 and the average income stood at $73,010, compared to Rest of NSW's figures of $52,390 and $65,215 respectively. Based on Wage Price Index growth of 8.86% since financial year 2023, current estimates would be approximately $53,292 (median) and $79,479 (average) as of September 2025. The 2021 Census reported that household, family and personal incomes all ranked modestly in Southern Highlands, between the 39th and 39th percentiles. Income analysis revealed that the $1,500 - 2,999 bracket dominated with 27.8% of residents (2,061 people). 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

In Southern Highlands, as per the latest Census evaluation, 98.0% of dwellings were houses, with the remaining 2.0% being semi-detached, apartments, or other types. This contrasts with Non-Metro NSW's dwelling composition of 82.6% houses and 17.4% other dwellings. Home ownership in Southern Highlands stood at 54.6%, compared to mortgaged dwellings at 32.6% and rented ones at 12.8%. The median monthly mortgage repayment was $2,108, higher than Non-Metro NSW's average of $1,733. The median weekly rent in Southern Highlands was $400, lower than Non-Metro NSW's figure of $330. Nationally, Southern Highlands' median monthly 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 comprise 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 constitute the remaining 27.1%, with lone person households at 25.0% and group households making up 1.9%. The median household size is 2.4 people, which aligns with the average for the Rest of NSW.

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. As of 2016 data, 32.4% of residents aged 15 and above held university qualifications, exceeding broader benchmarks such as the 21.3% in Rest of NSW and 22.4% in SA4 region. University graduates with bachelor degrees lead at 21.1%, followed by postgraduate qualifications (7.9%) and graduate diplomas (3.4%). Vocational credentials are also prominent, with 38.5% of residents aged 15 and above holding such qualifications – advanced diplomas at 12.5% and certificates at 26.0%.

Educational participation is 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 active public transport stops offering a mix of train and bus services. These are served by 29 routes that collectively facilitate 836 weekly passenger trips. Transport accessibility is rated good, with residents typically residing 267 meters from the nearest stop. As a mainly residential area, most commuters travel outward. Cars remain the primary mode at 92%, while 5% walk. Vehicle ownership averages 1.7 per dwelling, exceeding the regional average.

According to the 2021 Census, 30.5% of residents work from home, which may be influenced by COVID-19 conditions. Service frequency averages 119 trips daily across all routes, equating to roughly four weekly trips per individual stop. The accompanying map displays the 100 nearest stops to the location's 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

Southern Highlands health data shows positive outcomes for residents. Mortality rates and health conditions align with national benchmarks.

Common health conditions prevalence is low across both younger and older age groups. Private health cover rate is high at 55% (~4,107 people), compared to Rest of NSW's 51.9%. Most common medical conditions are arthritis (11.0%) and asthma (7.2%). 64.7% of residents report no medical ailments, similar to Rest of NSW's 63.3%. Working-age population health outcomes are typical. The area has a higher proportion of seniors at 31.5% (~2,336 people), compared to Rest of NSW's 23.0%. Senior health outcomes rank high nationally.

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, surveyed in 2016, had a low cultural diversity with 81.1% of its population born in Australia, 89.8% being citizens, and 94.8% speaking English only at home. Christianity was the predominant religion, at 56.8%, slightly higher than the Rest of NSW's 55.9%. The top three ancestral groups were English (31.7%), Australian (27.7%), and Scottish (10.7%).

Hungarian (0.4% vs regional 0.2%) and Irish (10.3% vs 8.8%) were notably overrepresented, while Welsh was slightly higher at 0.6% compared to the region's 0.5%.

Southern Highlands ranks among the oldest 10% of areas nationwide

Southern Highlands has a median age of 53, which is considerably higher than the Rest of NSW figure of 43 and substantially exceeds the national norm of 38. Relative to Rest of NSW, Southern Highlands has a higher concentration of 65-74 residents at 17.0%, but fewer 25-34 year-olds at 6.5%. This 65-74 concentration is well above the national figure of 9.4%. Between the 2021 Census and now, the 75 to 84 age group has grown from 9.7% to 11.7%, while the 35 to 44 cohort increased from 8.9% to 10.0%. Conversely, the 65 to 74 cohort has declined from 18.5% to 17.0%. Looking ahead to 2041, demographic projections reveal significant shifts in Southern Highlands' age structure. The 45 to 54 group is projected to grow by 30%, reaching 1,151 people from the current 883. Meanwhile, the 55 to 64 cohort grows by a modest 1%.