Clayton

Population growth drivers in Clayton are slightly above average based on AreaSearch's ranking of recent, and medium term trends

Based on AreaSearch's analysis of ABS population updates and new addresses validated since Feb 2026, Clayton's estimated population stands at around 25,191. This is an increase of 6,203 people (32.7%) since the 2021 Census which reported a population of 18,988. The change was inferred from AreaSearch's resident population estimate of 24,753 in June 2024 following examination of ABS ERP data release and an additional 457 validated new addresses since the Census date. Clayton's population density ratio is 3,221 persons per square kilometer, placing it in the upper quartile relative to national locations assessed by AreaSearch. Clayton's growth rate exceeded the national average (9.9%) and state average since the 2021 census, marking it as a growth leader in the region. Overseas migration contributed approximately 99.0% of overall population gains during recent periods.

AreaSearch is adopting ABS/Geoscience Australia projections released in 2024 with 2022 as the base year for each SA2 area. For areas not covered by this data, AreaSearch utilises VIC State Government's Regional/LGA projections released in 2023 with adjustments made employing a method of weighted aggregation of population growth from LGA to SA2 levels. Growth rates by age group are applied across all areas for years 2032 to 2041. Looking ahead, significant population increase is forecasted for the top quartile of statistical areas across the nation. Clayton is expected to grow by 11,228 persons to 2041 based on aggregated SA2-level projections, reflecting an increase of 45.3% in total over the 17 years.

AreaSearch assessment of residential development activity positions Clayton among the top 25% of areas assessed nationwide

Based on AreaSearch analysis of ABS building approval numbers, allocated from statistical area data, Clayton has recorded around 90 residential properties granted approval each year over the past five financial years. This totals an estimated 451 homes between FY-21 and FY-25. So far in FY-26, 57 approvals have been recorded. On average, 7 new residents are associated with every home built during this period.

This demand significantly exceeds new supply, typically leading to price growth and increased buyer competition. New properties are constructed at an average value of $506,000, indicating a focus on the premium market with high-end developments. In FY-26, $15.0 million in commercial development approvals have been recorded, suggesting steady commercial investment activity in Clayton. Compared to Greater Melbourne, Clayton shows approximately 75% of the construction activity per person and ranks among the 57th percentile of areas assessed nationally. The new building activity comprises 15.0% detached houses and 85.0% attached dwellings, reflecting a shift towards higher-density living that creates more affordable entry points for downsizers, investors, and first-home buyers.

This represents a notable change from the area's existing housing composition, which is currently 36.0% houses. With around 270 people per dwelling approval, Clayton indicates a developing market. According to AreaSearch's latest quarterly estimate, Clayton is projected to add 11,401 residents by 2041. Should current construction levels persist, housing supply may lag population growth, potentially intensifying buyer competition and underpinning price growth in the area.

Clayton has very high levels of nearby infrastructure activity, ranking in the top 10% nationally

Changes to local infrastructure significantly impact an area's performance. AreaSearch identified 37 projects likely affecting the region. Notable initiatives include the Monash Medical Centre Tower Expansion Project, Monash Accommodation Student Housing Development, 409 Clayton Road Mixed-Use Development, and Monash University Campus Centre Redevelopment. The following list details those most relevant.

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

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AreaSearch analysis of employment trends sees Clayton performing better than 90% of local markets assessed across Australia

Clayton has an educated workforce with diverse industry representation. Its unemployment rate is 1.8%, lower than Greater Melbourne's 4.7%. Employment growth over the past year was estimated at 5.9%.

As of September 2025, 15,973 residents are employed, with a participation rate matching Greater Melbourne's 71.0%. Around 22.8% work from home, though Covid-19 impacts should be considered. Key employment sectors include health care & social assistance, retail trade, and accommodation & food, with the latter having a higher share than the regional average. Construction has a lower presence in Clayton compared to the region.

There are 1.7 workers for every resident, indicating it functions as an employment hub attracting external workers. Between September 2024 and September 2025, employment increased by 5.9%, while labour force also grew by 5.9%. In Greater Melbourne, employment grew by 3.0% during the same period. According to Jobs and Skills Australia's national employment forecasts from May-25, Clayton's employment is projected to increase by 6.5% over five years and 13.6% over ten years.

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

Clayton suburb's income level is lower than average nationally. According to latest ATO data aggregated by AreaSearch, Clayton's median income among taxpayers in financial year 2023 was $38,403, with an average income of $47,835. Greater Melbourne's figures were $57,688 and $75,164 respectively. Based on Wage Price Index growth of 8.25% since financial year 2023, estimated incomes as of September 2025 would be approximately $41,571 (median) and $51,781 (average). Census 2021 income data shows individual incomes at the 10th percentile were $594 weekly, while household incomes were at the 35th percentile. Income analysis reveals that 31.4% of Clayton's population (7,909 individuals) fall within the $1,500 - $2,999 income range, similar to metropolitan region's 32.8%. Housing affordability pressures are severe, with only 77.7% of income remaining, ranking at the 27th percentile. Clayton's area has an SEIFA income ranking in the 5th decile.

Clayton displays a diverse mix of dwelling types, with a higher proportion of rental properties than the broader region

Clayton's dwelling structure, as per the latest Census, consisted of 35.5% houses and 64.4% other dwellings (semi-detached, apartments, 'other' dwellings). In comparison, Melbourne metro had 67.9% houses and 32.1% other dwellings. Home ownership in Clayton was at 19.4%, with the rest being mortgaged (17.7%) or rented (62.9%). The median monthly mortgage repayment was $2,000, aligning with Melbourne metro's average, while the median weekly rent was $400, compared to Melbourne metro's $390. Nationally, Clayton's mortgage repayments exceeded the Australian average of $1,863, and rents surpassed the national figure of $375.

Clayton features high concentrations of group households, with a lower-than-average median household size

Family households account for 53.5% of all households, including 19.2% that are couples with children, 23.1% that are couples without children, and 7.7% that are single parent families. Non-family households make up the remaining 46.5%, with lone person households at 26.0% and group households comprising 20.5%. The median household size is 2.5 people, which is smaller than the Greater Melbourne average of 2.6.

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

Clayton's residents aged 15 and above have a notable educational advantage with 50.5% holding university qualifications, surpassing the SA4 region's 29.8% and Australia's 30.4%. Bachelor degrees are most prevalent at 28.1%, followed by postgraduate qualifications (20.6%) and graduate diplomas (1.8%). Vocational pathways account for 17.7%, with advanced diplomas at 9.2% and certificates at 8.5%. Educational participation is high, with 46.8% currently enrolled in formal education, including 30.9% in tertiary, 3.8% in primary, and 2.8% in secondary education.

Educational participation is notably high, with 46.8% of residents currently enrolled in formal education. This includes 30.9% in tertiary education, 3.8% in primary education, and 2.8% pursuing secondary education.

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

Clayton has 94 active public transport stops serving a mix of train and bus services. These stops are covered by 42 routes that facilitate 12,759 weekly passenger trips in total. Residents enjoy good transport accessibility, with an average distance of 242 meters to the nearest stop. The area is predominantly residential, with most commuters traveling outward. Cars remain the primary mode of transport at 62%, while trains account for 16% and buses for 9%. Clayton has a lower vehicle ownership rate than the regional average, with an average of 0.9 vehicles per dwelling.

According to the 2021 Census, 22.8% of residents work from home, which may be influenced by COVID-19 conditions. Across all routes, there are an average of 1,822 trips per day, equating to approximately 135 weekly trips per individual stop.

The level of general health in Clayton is notably higher than the national average with prevalence of common health conditions low among the general population though higher than the nation's average across older, at risk cohorts

Clayton shows better-than-average health outcomes based on AreaSearch's assessment of mortality rates and chronic condition prevalence. The prevalence of common health conditions among its general population is low but higher than the national average for older, at-risk cohorts. Private health cover is extremely low, with approximately 46% of Clayton's total population (~11,552 people) having it, compared to Greater Melbourne's 56.7%.

Nationally, 55.7% have private health cover. Mental health issues and asthma are the most common medical conditions in Clayton, affecting 6.2% and 4.8% of residents respectively. 81.7% of Clayton residents declare themselves completely clear of medical ailments, compared to Greater Melbourne's 72.6%. Clayton has 7.2% of its residents aged 65 and over (1,813 people), lower than Greater Melbourne's 15.1%, but still ranks lower nationally than the broader population.

Clayton is among the most culturally diverse areas in the country based on AreaSearch assessment of a range of language and cultural background related metrics

Clayton has a population where 69.3% speak a language other than English at home, and 70.7% were born overseas. Christianity is the predominant religion in Clayton, with 30.4% of people identifying as such. Hinduism is notably overrepresented compared to Greater Melbourne's average, comprising 16.2% of Clayton's population.

In terms of ancestry, Chinese make up 22.5%, Other 20.5%, and Indian 12.3%, all higher than regional averages. Significant disparities are seen in Sri Lankan (Clayton: 1.7%, Regional: 0.8%), Greek (4.8% vs 2.7%) and Korean (1.2% vs 0.3%) representation.

Clayton hosts a very young demographic, ranking in the bottom 10% of areas nationwide

Clayton's median age is 25 years, which is significantly lower than Greater Melbourne's average of 37 and the national average of 38 years. Compared to Greater Melbourne, Clayton has a higher concentration of residents aged 15-24 at 37.0%, but fewer residents aged 5-14 at 3.3%. This concentration of 15-24 year-olds is well above the national average of 12.5%. According to the 2021 Census, Clayton's median age has decreased by 2.7 years to 25 from its previous figure of 28. The proportion of residents aged 15 to 24 has grown from 28.3% to 37.0%, while the proportion of those aged 35 to 44 has declined from 11.0% to 9.0%. Additionally, the proportion of residents aged 45 to 54 has dropped from 6.3% to 4.7%. Looking ahead to 2041, demographic projections indicate significant shifts in Clayton's age structure, with the strongest projected growth in the 25-34 cohort at 63%, adding 4,811 residents to reach a total of 12,470.