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, as of November 2025, is approximately 7,409 people. This figure represents an increase of 159 individuals since the 2021 Census, which recorded a population of 7,250. The rise is inferred from ABS's estimated resident population of 7,359 in June 2024 and the addition of 104 validated new addresses post-Census. This results in a density ratio of 5.3 persons per square kilometer. Over the past decade, Southern Highlands has exhibited steady growth with a compound annual growth rate of 1.2%, outperforming its SA4 region. Overseas migration accounted for approximately 62.4% of recent population gains.

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, using 2021 as the base year, are employed. Growth rates by age group from these aggregations are applied to all areas for years 2032 to 2041. Future trends project above median population growth for national regional areas; Southern Highlands is expected to grow by 1,298 persons to 2041, reflecting a total increase of 16.8% over the 17-year period.

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

Southern Highlands has recorded approximately 59 residential properties granted approval annually. Over the past five financial years, from FY21 to FY25, around 295 homes were approved, with an additional 18 approved so far in FY26. On average, about one new resident arrives per year for each new home over these five years, suggesting a balanced supply and demand creating stable market conditions.

The average value of new homes being built is $929,000, indicating that developers are targeting the premium market segment with higher-end properties. This financial year has seen $1.8 million in commercial approvals registered, reflecting a predominantly residential focus compared to Rest of NSW. Southern Highlands shows moderately higher development activity than the regional average, at 26.0% above over the past five years, maintaining good buyer choice and supporting existing property values.

However, recent periods have seen development activity moderate. New development consists of 88.0% standalone homes and 12.0% attached dwellings, preserving 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 estimate Southern Highlands will gain 1,247 residents by 2041. 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 42ndth percentile nationally

Changes to local infrastructure significantly influence an area's performance. AreaSearch has identified 24 projects likely to impact the area. Key projects include Bundanoon Village Place Plan, Southern Highlands Innovation Park, Moss Vale Bypass, and Moss Vale Station and Stabling Yard Upgrade. The following list details those most 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 highly educated workforce. Its construction sector is notably prominent, with an unemployment rate of 0.5% as of June 2025.

Employment in the area grew by an estimated 2.9% over the past year. As of June 2025, there are 3,453 residents employed, with an unemployment rate of 3.2%, which is 0.5 percentage points lower than Rest of NSW's rate of 3.7%. Workforce participation in Southern Highlands is similar to Rest of NSW's rate of 56.4%. The key industries of employment among residents are construction, health care & social assistance, and professional & technical services.

Notably, the area has a high specialization in professional & technical services, with an employment share that is 1.8 times the regional level. Conversely, health care & social assistance employs only 12.3% of local workers, which is below Rest of NSW's rate of 16.9%. During the 12-month period ending June 2025, employment in Southern Highlands increased by 2.9%, while the labour force grew by 2.6%. This resulted in a decrease in the unemployment rate by 0.3 percentage points. In contrast, Rest of NSW saw employment contract by 0.1% during this period. State-level data from Nov-25 shows that NSW experienced a contraction in employment of 0.03%, equating to a loss of 2,260 jobs. The state unemployment rate was recorded at 3.9%, which compares favourably with the national unemployment rate of 4.3%. Jobs and Skills Australia's national employment forecasts from May-25 project that national employment will expand by 6.6% over five years and 13.7% over ten years. However, growth rates vary significantly between industry sectors. Applying these projections to Southern Highlands' employment mix suggests that local employment should increase by approximately 6.3% over five years and 13.1% over ten years.

Income levels sit below national averages according to AreaSearch assessment

The Southern Highlands SA2 had a high national income level according to AreaSearch's aggregation of latest ATO data for financial year 2022. The median income among taxpayers was $46,055 and the average income stood at $73,053, compared to Rest of NSW's figures of $49,459 and $62,998 respectively. As of September 2025, current estimates based on Wage Price Index growth of 12.61% since financial year 2022 would be approximately $51,863 (median) and $82,265 (average). The 2021 Census showed 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 (2,059 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

Southern Highlands' dwelling structures, as per the latest Census, consisted of 98.0% houses and 2.0% other dwellings (semi-detached, apartments, 'other' dwellings). In contrast, Non-Metro NSW had 90.6% houses and 9.4% other dwellings. Home ownership in Southern Highlands was at 54.6%, with the rest being mortgaged (32.6%) or rented (12.8%). The median monthly mortgage repayment was $2,108, lower than Non-Metro NSW's average of $2,167. Median weekly rent in Southern Highlands was $400, compared to Non-Metro NSW's $430. Nationally, Southern Highlands' mortgage repayments were higher at $2,108 versus the Australian average of $1,863, and rents were also higher at $400 compared to 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 account for the remaining 27.1%, with lone person households making up 25.0% and group households comprising 1.9%. The median household size is 2.4 people, which aligns with the average in the Rest of NSW.

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

Southern Highlands has a higher educational attainment than the broader NSW average. Specifically, 32.4% of residents aged 15 years or above have 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 or above holding such qualifications – advanced diplomas account for 12.5% while certificates make up 26.0%.

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

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

The analysis of public transport in Southern Highlands shows that there are 181 active transport stops operating. These include a mix of train and bus services. There are 36 individual routes servicing these stops, collectively providing 906 weekly passenger trips.

The accessibility of transport is rated as good, with residents typically located 269 meters from the nearest transport stop. On average, there are 129 trips per day across all routes, which equates to approximately 5 weekly trips per individual stop.

Health performance in Southern Highlands is lower than average with common health conditions somewhat prevalent across both younger and older age cohorts

Southern Highlands faces significant health challenges with common health conditions prevalent across both younger and older age cohorts. The rate of private health cover is high at approximately 56% of the total population (~4,149 people), compared to 66.3% across Rest of NSW.

The most common medical conditions are arthritis and asthma, impacting 11.0 and 7.2% of residents respectively, while 64.7% declare themselves completely clear of medical ailments, similar to the 64.8% across Rest of NSW. The area has a higher proportion of seniors aged 65 and over at 31.5% (2,334 people), compared to 27.7% in Rest of NSW. Health outcomes among seniors are strong, performing better than the general population in health metrics.

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 had a lower cultural diversity, with 81.1% born in Australia, 89.8% being citizens, and 94.8% speaking English only at home. Christianity was the main religion, at 56.8%, compared to 57.0% regionally. Top ancestral groups were English (31.7%), Australian (27.7%), and Scottish (10.7%).

Hungarian representation was notably higher at 0.4%, Irish at 10.3%, and Welsh at 0.6%.

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 present, 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%, adding 267 people and reaching 1,151 from the current 883. Meanwhile, the 55 to 64 cohort grows by a modest 1%, adding 8 people.