Penola
Statistical Area - sa2

Penola is positioned among the lower quartile of areas assessed nationally for population growth based on AreaSearch's assessment of recent, and medium term trends

Penola's population, as of August 2025, is approximately 3,205. This figure represents an increase of 98 people, a growth rate of 3.2%, since the 2021 Census which reported a population of 3,107. The estimated resident population of 3,192 in June 2024 and an additional 21 validated new addresses contribute to this increase. This results in a population density ratio of 2.1 persons per square kilometer. Penola's growth rate since the census is 3.2%, which is within 2.2 percentage points of the SA3 area's growth rate of 5.4%. Natural growth accounted for approximately 57.1% 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 and years post-2032, the SA State Government's Regional/LGA projections by age category are adopted, released in 2023 based on 2021 data, with adjustments made employing a method of weighted aggregation of population growth from LGA to SA2 levels. Looking ahead, lower quartile growth is anticipated for Australia's regional areas. Based on the latest population numbers, Penola is expected to increase by 68 persons to reach 3,273 by 2041, reflecting an overall increase of 1.7% over the 17-year period.

AreaSearch assessment of residential development drivers sees a low level of activity in Penola, placing the area among the bottom 25% of areas assessed nationally

Penola averaged approximately 6 new dwelling approvals per year over the past 5 financial years, totalling 33 homes. As of FY26, 3 approvals have been recorded. Between FY21 and FY25, an average of 1.1 people moved to the area for each dwelling built. This indicates a balanced supply and demand market, supporting stable conditions with new homes averaging $346,000 in construction cost value.

In FY26, $5.4 million in commercial development approvals have been recorded, suggesting Penola's residential character. Compared to the Rest of SA, Penola has significantly less development activity, at 58.0% below the regional average per person. This limited new construction typically reinforces demand and pricing for existing properties, which is also under the national average, indicating the area's established nature and suggesting potential planning limitations. All new construction in Penola has been detached dwellings, preserving its low density nature and attracting space-seeking buyers. The estimated population count of 583 people per dwelling approval reflects this quiet development environment.

Future projections show Penola adding 55 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.

Penola has emerging levels of nearby infrastructure activity, ranking in the 25thth percentile nationally

Changes to local infrastructure significantly influence an area's performance. AreaSearch has identified one major project likely impacting the region: Lower Limestone Coast Water Allocation Plan, Limestone Coast Energy Park, Wattle Range Council General Code Amendment, and Melbourne To Adelaide Freight Rail Improvements are key projects, with the following details those most relevant.

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

AreaSearch analysis indicates Penola maintains employment conditions that align with national benchmarks

Penola has a diverse workforce with both white and blue collar jobs, prominent manufacturing and industrial sectors, and an unemployment rate of 2.7% as of June 2025. The town's residents have an unemployment rate 1.9% lower than the Rest of SA's rate of 4.6%, with a workforce participation rate of 60.4%, compared to the Rest of SA's 54.1%.

Key employment sectors include agriculture, forestry & fishing, manufacturing, and health care & social assistance. Penola specializes in agriculture, forestry & fishing, employing 2.2 times more residents than the regional average. However, health care & social assistance employs only 8.1% of local workers, below the Rest of SA's 13.9%. Many residents commute elsewhere for work based on Census data.

Between June 2024 and June 2025, Penola's labour force decreased by 2.2%, with employment decreasing by 3.0%, resulting in a 0.7 percentage point rise in the unemployment rate. In contrast, Rest of SA experienced an employment decline of 1.2% and labour force growth of 0.1%, with a 1.2 percentage point rise in unemployment. Job forecasts from Jobs and Skills Australia indicate national employment growth of 6.6% over five years and 13.7% over ten years, but local projections suggest Penola's growth may be approximately 4.0% over five years and 10.0% over ten years.

Income figures position the area below 75% of locations analysed nationally by AreaSearch

AreaSearch's latest postcode level ATO data for financial year 2022 shows Penola's median income among taxpayers was $48,199. The average income in Penola during this period was $61,003. Both figures are lower than the national averages. In comparison, Rest of SA had a median income of $46,889 and an average income of $56,582. Based on Wage Price Index growth of 10.83% since financial year 2022, estimated current incomes in Penola would be approximately $53,419 (median) and $67,610 (average) as of March 2025. Census data indicates that household, family, and personal incomes in Penola rank modestly, between the 21st and 36th percentiles. Income analysis reveals that the predominant cohort spans 30.1% of locals (964 people), falling within the $1,500 - 2,999 income category. This trend is consistent with broader regional patterns showing 27.5% in the same category. Housing costs are manageable, with 91.6% retained as disposable income. However, Penola's disposable income sits below average at the 31st percentile.

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

In Penola, as per the latest Census evaluation, 94.8% of dwellings were houses with the remaining 5.2% consisting of semi-detached homes, apartments, and other types of dwellings. This differs from Non-Metro SA's composition of 87.6% houses and 12.5% other dwellings. Home ownership in Penola stood at 44.0%, with mortgaged properties making up 33.5% and rented dwellings accounting for 22.5%. The median monthly mortgage repayment in the area was $896, considerably lower than Non-Metro SA's average of $1,083. The median weekly rent figure in Penola was recorded at $181, compared to Non-Metro SA's $205. Nationally, Penola's mortgage repayments are significantly lower than the Australian average of $1,863, while rents are substantially below the national figure of $375.

Penola features high concentrations of lone person households, with a fairly typical median household size

Family households comprise 66.2% of all households, including 24.1% couples with children, 32.5% couples without children, and 9.4% single parent families. Non-family households constitute the remaining 33.8%, with lone person households at 31.3% and group households making up 2.3%. The median household size is 2.3 people, which aligns with the Rest of SA average.

Penola faces educational challenges, with performance metrics placing it in the bottom quartile of areas assessed nationally

The area's university qualification rate is 15.4%, significantly lower than Australia's average of 30.4%. Bachelor degrees are the most common (11.2%), followed by graduate diplomas at 2.3% and postgraduate qualifications at 1.9%. Vocational credentials are prevalent, with 34.9% of residents aged 15+ holding them, including advanced diplomas (8.0%) and certificates (26.9%). Educational participation is high, with 27.1% currently enrolled in formal education: 13.8% in primary, 6.7% in secondary, and 1.9% in tertiary.

Penola's five schools have a combined enrollment of 375 students, serving distinct age groups (4 primary, 1 secondary). School places per 100 residents are lower than the regional average (11.7 vs. 14.9), with some students potentially attending schools in nearby areas.

No public transport data available for this catchment area.

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

Penola faces significant health challenges with common health conditions prevalent across both younger and older age cohorts. The rate of private health cover is relatively low at approximately 50% of the total population (~1,602 people), compared to the national average of 55.3%.

The most common medical conditions in the area are arthritis and mental health issues, impacting 10.1 and 8.5% of residents respectively. 64.7% of residents declared themselves completely clear of medical ailments, compared to 65.5% across Rest of SA. As of 2021, 24.9% of Penola's population is aged 65 and over (797 people), which is higher than the 23.3% in Rest of SA. Health outcomes among seniors are above average, performing better than the general population in health metrics.

Penola is considerably less culturally diverse than average when assessed alongside AreaSearch's national rankings for language and cultural background related metrics

Penola's cultural diversity was found to be below average, with 88.8% of its population being Australian citizens, 90.2% born in Australia, and 96.7% speaking English only at home. Christianity is the predominant religion in Penola, comprising 44.7% of people, compared to 42.9% across Rest of SA. The top three ancestry groups are Australian (34.5%), English (31.3%), and Scottish (9.6%).

Notably, German ethnicity is overrepresented at 6.1% in Penola versus the regional average of 6.4%, while Dutch ethnicity stands at 1.3% compared to the regional average of 1.7%.

Penola hosts an older demographic, ranking in the top quartile nationwide

The median age in Penola is 48 years, similar to the Rest of SA's average of 47 years, which is well above the national norm of 38 years. Compared to the Rest of SA average, the 45-54 cohort is notably over-represented in Penola at 13.9%, while the 25-34 year-olds are under-represented at 8.6%. Between 2021 and present, the 75 to 84 age group has grown from 6.9% to 8.3% of the population, while the 15 to 24 cohort increased from 9.2% to 10.2%. Conversely, the 5 to 14 cohort has declined from 13.0% to 10.8%. Population forecasts for Penola in 2041 indicate substantial demographic changes. The 75 to 84 cohort shows the strongest projected growth at 31%, adding 83 residents to reach 350. Senior residents aged 65 and above will drive 97% of population growth, underscoring demographic aging trends. Conversely, both the 0 to 4 and 25 to 34 age groups are expected to see reduced numbers.