Clayton

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

Based on analysis of ABS population updates for the broader area and new addresses validated by AreaSearch, as of Feb 2026, Clayton's estimated population is around 25,191. This reflects an increase of 6,203 people since the 2021 Census, which reported a population of 18,988. The change was inferred from AreaSearch's estimate of 24,753 residents following examination of ABS' latest ERP data release (June 2024), along with an additional 457 validated new addresses since the Census date. Clayton's population density is 3,221 persons per square kilometer, placing it in the upper quartile relative to national locations assessed by AreaSearch. Clayton's growth of 32.7% since the 2021 census exceeded both national average (9.9%) and state averages, 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 for each SA2 area, released in 2024 with 2022 as the base year. For areas not covered by this data, AreaSearch utilises VIC State Government's Regional/LGA projections released in 2023, adjusted using 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. By 2041, the suburb is expected to grow by 11,083 persons based on aggregated SA2-level projections, reflecting a total increase of 42.3% over the 17-year period.

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

AreaSearch analysis of ABS building approval numbers in Clayton shows approximately 90 residential properties granted approval each year over the past five financial years, totalling an estimated 452 homes. As of FY-26, 67 approvals have been recorded. On average, 6.9 new residents are expected per home built annually between FY-21 and FY-25. This indicates demand significantly exceeds supply, potentially driving price growth and increased buyer competition.

The average construction value of new properties is $506,000, suggesting developers focus on the premium market with high-end developments. In FY-26, $15.0 million in commercial development approvals have been recorded, reflecting steady commercial investment activity. Compared to Greater Melbourne, Clayton exhibits around 75% of the construction activity per person and ranks among the 58th percentile nationally when assessed areas are considered. The new building activity comprises approximately 15.0% detached houses and 85.0% attached dwellings, indicating a shift towards higher-density living to create more affordable entry points for downsizers, investors, and first-home buyers. This represents a notable change from the area's existing housing composition, currently at 36.0% houses, suggesting decreasing availability of developable sites and reflecting evolving lifestyles and demand for diverse, affordable housing options.

With around 268 people per dwelling approval, Clayton demonstrates a developing market with future projections estimating an addition of 10,645 residents by 2041, based on the latest AreaSearch quarterly estimate. Should current construction levels persist, housing supply may lag population growth, potentially intensifying buyer competition and underpinning price growth.

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

Thirty-seven infrastructure projects have been identified by AreaSearch as potentially impacting the area. Key projects 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 likely to be 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 Clayton performing better than 85% of local markets assessed across Australia

Clayton has a highly educated workforce with diverse sector representation. Its unemployment rate was 1.9% as of December 2025. Employment growth over the past year was estimated at 4.8%.

Compared to Greater Melbourne's unemployment rate of 4.8%, Clayton's is 2.8% lower, while its workforce participation is similar at 71.3%. According to Census responses, 22.8% of residents work from home. Leading employment industries are health care & social assistance, retail trade, and accommodation & food. Clayton specializes in accommodation & food with an employment share 1.8 times the regional level, but construction has limited presence at 5.6% compared to the regional average of 9.7%.

There are 1.7 workers for every resident, indicating Clayton functions as an employment hub attracting workers from surrounding areas. Between December 2024 and December 2025, employment increased by 4.8%, while labour force increased by 5.0%, raising the unemployment rate by 0.2 percentage points. In Greater Melbourne, employment grew by 2.4%, labour force expanded by 2.8%, and unemployment rose by 0.3 percentage points during the same period. Jobs and Skills Australia's national employment forecasts from May-25 suggest Clayton's employment should increase by 6.5% over five years and 13.6% over ten years, based on industry-specific projections applied to Clayton's employment mix.

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

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

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

In Clayton, as per the most recent Census evaluation, 35.5% of dwellings were houses while 64.4% consisted of other types such as semi-detached homes, apartments, and 'other' dwellings. This compares to Melbourne metropolitan area's figures of 67.9% houses and 32.1% other dwellings. Home ownership in Clayton stood at 19.4%, with mortgaged properties at 17.7% and rented ones at 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 median monthly mortgage repayments exceeded the Australian average of $1,863, and rents were higher than 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% couples with children, 23.1% couples without children, and 7.7% single parent families. Non-family households constitute 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 educational attainment significantly exceeds broader benchmarks. Among residents aged 15 and above, 50.5% hold university qualifications, compared to 29.8% in the SA4 region and 30.4% nationally. This high level of educational attainment positions Clayton favourably for knowledge-based opportunities. 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% of qualifications among those aged 15 and above, with advanced diplomas at 9.2% and certificates at 8.5%. Educational participation is notably high in Clayton, 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 offering a mix of train and bus services. These stops are served by 42 different routes, facilitating 12,759 weekly passenger trips in total. Transport accessibility is considered good, with residents typically residing 242 meters from the nearest stop. As a predominantly residential area, most commuters travel outward. The car remains the primary mode of transport at 62%, while train usage stands at 16% and bus usage at 9%. On average, there are 0.9 vehicles per dwelling, which is below the regional average.

According to the 2021 Census, 22.8% of residents work from home, a figure that may be influenced by COVID-19 conditions. Across all routes, service frequency averages 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, as per AreaSearch's evaluation of mortality rates and chronic condition prevalence. Common health conditions are less prevalent among Clayton's general population compared to national averages but higher among older, at-risk cohorts. Private health cover is extremely low in Clayton, with approximately 46% of the total population (~11,552 people) having it, compared to Greater Melbourne's 56.7%.

Nationally, this figure stands at 55.7%. Mental health issues and asthma are the most common medical conditions in Clayton, affecting 6.2% and 4.8% of residents respectively. A total of 81.7% of Clayton residents report being completely free from medical ailments, compared to Greater Melbourne's 72.6%. Clayton has a lower proportion of residents aged 65 and over (7.3%, or 1,838 people) than Greater Melbourne (15.1%).

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 highly diverse population, with 69.3% speaking a language other than English at home and 70.7% born overseas. Christianity is the predominant religion in Clayton, accounting for 30.4%. Notably, Hinduism comprises 16.2%, significantly higher than Melbourne's average of 4.4%.

In terms of ancestry, Chinese people make up 22.5%, Indian 12.3%, and Other 20.5%, all substantially higher than regional averages. There are also notable divergences in Sri Lankan (1.7% vs 0.8%), Greek (4.8% vs 2.7%), and Korean (1.2% vs 0.3%) representation compared to the region.

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 proportion of residents aged 15-24 (36.9%) but fewer residents aged 5-14 (3.4%). This concentration of 15-24 year-olds is notably higher than the national average of 12.5%. Post the 2021 Census, Clayton's median age has decreased by 2.9 years to 25 from 28. The proportion of residents aged 15-24 has increased from 28.3% to 36.9%, while the 35-44 cohort has declined from 11.0% to 9.1% and the 45-54 group has dropped from 6.3% to 4.8%. By 2041, demographic projections indicate significant shifts in Clayton's age structure, with the strongest growth projected for the 25-34 cohort at 59%, adding 4,582 residents to reach a total of 12,392.