Magnetic Island

An assessment of population growth drivers in Magnetic Island reveals an overall ranking slightly below national averages considering recent, and medium term trends

Magnetic Island's population was approximately 2,674 as of November 2025. This figure reflects a growth of 199 people since the 2021 Census, which reported a population of 2,475. The increase is inferred from an estimated resident population of 2,638 in June 2024 and 94 validated new addresses since the Census date. This results in a population density of 52 persons per square kilometer. Magnetic Island's growth rate of 8.0% exceeded both the SA4 region (6.9%) and SA3 area during this period, indicating it as a leading growth area. Interstate migration contributed approximately 71.8% to overall population gains recently.

AreaSearch uses ABS/Geoscience Australia projections for each SA2 area released in 2024 with a base year of 2022. For areas not covered and years post-2032, Queensland State Government's SA2 area projections from 2023 based on 2021 data are adopted. However, these state projections lack age category splits, so proportional growth weightings aligned with ABS Greater Capital Region projections released in 2023 using 2022 data are applied where utilized. Future demographic trends anticipate lower quartile growth for non-metropolitan areas nationally, with the area expected to grow by 109 persons to reach a total population of approximately 2,873 by 2041 based on the latest annual ERP population numbers, reflecting an overall gain of 2.7% over the 17-year period.

Recent residential development output has been above average within Magnetic Island when compared nationally

Magnetic Island has seen approximately 26 new homes approved annually. Over the past five financial years, from FY-21 to FY-25131 homes were approved, with a further 6 approved so far in FY-26. On average, 1.6 people have moved to the area for each dwelling built over these years.

This has resulted in balanced supply and demand, creating stable market conditions. The average construction cost of new properties is $324,000, aligning with regional patterns. In FY-26, commercial approvals totaling $1.8 million have been registered, indicating a predominantly residential focus. Compared to the Rest of Qld, Magnetic Island has 149% more building activity per person, offering buyers greater choice.

New building activity comprises 95% detached houses and 5% medium and high-density housing, maintaining the area's low-density character with a focus on family homes. With around 104 people per dwelling approval, Magnetic Island exhibits characteristics of a growth area. Population forecasts indicate Magnetic Island will gain 73 residents by 2041. Based on current development patterns, new housing supply should meet demand, presenting good conditions for buyers and potentially facilitating population growth beyond current projections.

Magnetic Island has strong levels of nearby infrastructure activity, ranking in the top 30% nationally

No infrastructure changes will influence an area's performance more than local ones. AreaSearch has identified zero projects that could impact this particular area. Key projects include Weststate Private Hospital, Douglas Water Treatment Plant Clarifiers Upgrade (scheduled for completion in 2021), Bruce Highway upgrade program between Townsville and Ingham (commenced on 15th June 2020), and Sunshine State Solar Farm and Battery project (expected to start construction in Q4 2021). The following list details projects likely to be most relevant.

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AreaSearch assessment indicates Magnetic Island faces employment challenges relative to the majority of Australian markets

Magnetic Island's workforce is well-educated with a prominent tourism and hospitality sector. The unemployment rate as of September 2025 was 6.5%.

There were 1,117 residents employed while the unemployment rate was 2.5% higher than Rest of Qld's rate of 4.1%. Workforce participation lagged significantly at 47.1%, compared to Rest of Qld's 59.1%. Employment is concentrated in accommodation & food, health care & social assistance, and retail trade. The area specializes in accommodation & food with an employment share 2.5 times the regional level.

Conversely, health care & social assistance has lower representation at 11.3% versus the regional average of 16.1%. Over the year to September 2025, labour force levels increased by 0.6% while employment declined by 1.4%, causing unemployment rate to rise by 1.9 percentage points. Rest of Qld experienced employment growth of 1.7% and labour force growth of 2.1%. State-level data to 25-Nov shows QLD employment contracted by 0.01% with a state unemployment rate of 4.2%, broadly in line with the national rate of 4.3%. National employment forecasts from May-25 project a 6.6% increase over five years and 13.7% over ten years. Applying these projections to Magnetic Island's employment mix suggests local employment should increase by 6.4% over five years and 13.1% over ten years, assuming constant population projections.

Income metrics place the area in the bottom 10% of locations nationally according to AreaSearch analysis

AreaSearch's latest postcode level ATO data for financial year ending June 2022 shows median income in Magnetic Island SA2 was $39,504 and average income was $51,856. This is lower than Rest of Qld's median income of $50,780 and average income of $64,844. Based on Wage Price Index growth of 13.99% from June 2022 to September 2025, estimated median income in Magnetic Island would be approximately $45,031 and average income would be around $59,111 by that date. According to Census 2021 data, incomes in Magnetic Island fall between the 3rd and 15th percentiles nationally. The income bracket of $800 - 1,499 captures 28.8% of the community there, compared to metropolitan regions where 31.7% earn within the $1,500 - 2,999 range. Housing affordability pressures are severe in Magnetic Island, with only 84.7% of income remaining after housing costs, ranking at the 5th percentile nationally.

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

The latest Census evaluation of Magnetic Island's dwelling structure showed 83.6% houses and 16.3% other dwellings (semi-detached, apartments, 'other' dwellings), compared to Non-Metro Qld's 81.3% houses and 18.7% other dwellings. Home ownership on Magnetic Island was 49.1%, with mortgaged dwellings at 23.4% and rented ones at 27.5%. The median monthly mortgage repayment in the area was $1,353, lower than Non-Metro Qld's average of $1,517. The median weekly rent figure on Magnetic Island was recorded as $290, compared to Non-Metro Qld's $305. Nationally, Magnetic Island's mortgage repayments were significantly lower than the Australian average of $1,863, while rents were substantially below the national figure of $375.

Magnetic Island features high concentrations of lone person households and group households, with a lower-than-average median household size

Family households account for 58.9% of all households, including 11.8% couples with children, 37.6% couples without children, and 8.2% single parent families. Non-family households make up the remaining 41.1%, with lone person households at 36.4% and group households comprising 4.8%. The median household size is 1.9 people, which is smaller than the Rest of Qld average of 2.5.

Magnetic Island performs slightly above the national average for education, showing competitive qualification levels and steady academic outcomes

The area's university qualification rate is 28.6%, exceeding the SA4 region average of 20.1% and Rest of Qld's rate of 20.6%. Bachelor degrees are most common at 18.5%, followed by postgraduate qualifications (7.4%) and graduate diplomas (2.7%). Vocational credentials are held by 39.8% of residents aged 15+, with advanced diplomas at 13.2% and certificates at 26.6%.

A total of 22.3% of the population is actively pursuing education, including 8.7% in primary, 6.3% in secondary, and 2.8% in tertiary education.

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

The analysis of public transport on Magnetic Island shows that there are currently 51 active transport stops in operation. These include a mix of ferry and bus services. There are two individual routes servicing these stops, collectively providing 500 weekly passenger trips.

The accessibility of transport is rated as good, with residents typically located approximately 320 meters from the nearest transport stop. The service frequency averages 71 trips per day across all routes, which equates to roughly 9 weekly trips per individual stop.

Health performance in Magnetic Island is well below average with prevalence of common health conditions notable across both younger and older age cohorts

Magnetic Island faces significant health challenges, with common conditions prevalent across both younger and older age groups. Private health cover is low at approximately 46%, covering around 1,235 people, compared to Queensland's rest average of 53.3% and the national average of 55.3%. The most frequent medical conditions are arthritis (affecting 11.4%) and mental health issues (7.9%).

Around 63.2% report being free from medical ailments, compared to Queensland's rest at 67.8%. The island has a higher proportion of seniors aged 65 and over, at 36.1% or around 965 people, compared to the state average of 14.9%. Despite this, health outcomes among seniors are strong and often better than those in the general population.

In terms of cultural diversity, Magnetic Island records figures broadly comparable to the national average, as found in AreaSearch's assessment of a number of language and cultural background related metrics

Magnetic Island's cultural diversity was found to be above average, with 7.3% of its population speaking a language other than English at home and 27.6% born overseas. Christianity was the main religion on Magnetic Island, comprising 41.3% of its population. Notably, Buddhism was overrepresented compared to the rest of Queensland, making up 2.6% of Magnetic Island's population versus 0.9%.

The top three ancestry groups were English at 32.8%, Australian at 23.7%, and Irish at 11.8%. French, Scottish, and Dutch ethnicities showed notable divergences in representation compared to regional averages: French was overrepresented at 0.8% versus 0.4%, Scottish at 9.3% versus 7.7%, and Dutch at 1.7% versus 1.0%.

Magnetic Island ranks among the oldest 10% of areas nationwide

Magnetic Island's median age is 57 years, which is considerably higher than Queensland's average of 41 years and the national norm of 38 years. The age profile shows that residents aged 65-74 years are prominent, making up 23.7% of the population, compared to the Rest of Qld's figure of 9.4%. Conversely, those aged 15-24 years make up only 6.2%, which is smaller than the Rest of Qld average. From 2021 to present, the 75-84 age group has grown from 8.2% to 9.6%, while the 45-54 cohort has declined from 11.8% to 9.1% and the 55-64 group has dropped from 23.7% to 21.5%. By 2041, demographic projections indicate that the 85+ age cohort will rise significantly, expanding by 57 people (75%) from 77 to 135. This aging trend continues as residents aged 65 and older represent 75% of anticipated growth. Conversely, population declines are projected for those aged 5-14 years and 15-24 years.