Clayton

Population growth drivers in Clayton are strong compared to national averages based on AreaSearch's ranking of recent, and medium to long-term trends

As of Nov 2025, Clayton's population is estimated at around 25,235. This reflects an increase of 6,247 people since the 2021 Census, which reported a population of 18,988. The latest estimate by AreaSearch, following examination of the ABS ERP data release in June 2024, is 24,933 residents. This includes an additional 431 validated new addresses since the Census date. Clayton's population density is 3,227 persons per square kilometer, placing it in the upper quartile nationally assessed by AreaSearch. The suburb's growth rate of 32.9% since the 2021 census exceeded both national (8.9%) and state averages, marking it as a growth leader.

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 from 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. Based on aggregated SA2-level projections, the suburb is expected to grow by 11,263 persons to 2041, reflecting an increase of 45.1% 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, Clayton has recorded around 89 residential properties granted approval each year over the past five financial years, totalling an estimated 447 homes. So far in FY-26, 37 approvals have been recorded. On average, 7 new residents per year are associated with every home built between FY-21 and FY-25, indicating significant demand exceeding supply, which typically leads to price growth and increased buyer competition. New properties are constructed at an average expected cost of $506,000.

In terms of commercial development, Clayton has recorded $10.2 million in approvals this financial year, suggesting steady investment activity. Compared to Greater Melbourne, Clayton shows approximately 75% of the construction activity per person and ranks among the 56th percentile nationally. New building activity comprises 15.0% detached houses and 85.0% attached dwellings, reflecting a shift towards higher-density living that caters to downsizers, investors, and first-home buyers. This represents a notable change from Clayton's existing housing stock, which is currently 36.0% houses. With around 281 people per dwelling approval, Clayton indicates a developing market with future projections estimating an addition of 11,389 residents by 2041.

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

The performance of an area can significantly be influenced by changes in local infrastructure, major projects, and planning initiatives. AreaSearch has identified a total of 38 projects that are likely to impact the area. Notable projects include the Monash Medical Centre Tower Expansion Project, the Monash Accommodation Student Housing Development, the 409 Clayton Road Mixed-Use Development, and the Monash University Campus Centre Redevelopment. The following list details those projects 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 is 2.0%, with an estimated employment growth of 4.4% over the past year (AreaSearch aggregation).

As of June 2025, 15,068 residents are employed while the unemployment rate is 2.7% lower than Greater Melbourne's rate of 4.6%. Workforce participation in Clayton is 59.9%, compared to Greater Melbourne's 64.1%. Leading employment industries include health care & social assistance, retail trade, and accommodation & food, with a particular specialization in the latter (employment share 1.8 times the regional level). Construction has limited presence at 5.6% employment compared to 9.7% regionally.

There are 1.7 workers per resident, indicating Clayton functions as an employment hub attracting workers from surrounding areas. Over the year to June 2025, employment increased by 4.4%, while labour force grew by 4.5%, keeping unemployment broadly flat. In comparison, Greater Melbourne saw employment grow by 3.5% and labour force expand by 4.0%, with a rise in unemployment of 0.5 percentage points. Jobs and Skills Australia's national employment forecasts from Sep-22 project overall growth of 6.6% over five years and 13.7% over ten years, but industry-specific projections suggest Clayton's employment should 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's median income among taxpayers was $38,403 in financial year 2022. The average income stood at $47,835 during the same period. In comparison, Greater Melbourne had a median income of $54,892 and an average income of $73,761. Based on Wage Price Index growth of 12.16% since financial year 2022, estimates for September 2025 would be approximately $43,073 (median) and $53,652 (average). According to Census 2021 income data, individual incomes were at the 10th percentile ($594 weekly), while household incomes performed better at the 35th percentile. Income analysis revealed that 31.4% of Clayton's population fell within the $1,500 - 2,999 income range, mirroring the metropolitan region where 32.8% occupied this bracket. Housing affordability pressures were severe, with only 77.7% of income remaining, ranking at the 27th percentile. The area's SEIFA income ranking placed it 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 structures, as per the latest Census data, consisted of 35.5% houses and 64.4% other dwellings (semi-detached, apartments, 'other' dwellings), contrasting with Melbourne metro's 69.6% houses and 30.3% other dwellings. Home ownership in Clayton stood at 19.4%, with mortgaged dwellings at 17.7% and rented ones at 62.9%. The median monthly mortgage repayment was $2,000, lower than Melbourne metro's average of $2,383. Median weekly rent was recorded at $400, compared to Melbourne metro's $440. Nationally, Clayton's mortgage repayments exceeded the Australian average of $1,863, while 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% 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%, consisting of 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 2.7 people.

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% nationwide. This advantage positions Clayton strongly for knowledge-based opportunities. Bachelor degrees are the most common at 28.1%, followed by postgraduate qualifications (20.6%) and graduate diplomas (1.8%).

Vocational pathways account for 17.7% of qualifications, with advanced diplomas at 9.2% and certificates at 8.5%. 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. Clayton's five schools have a combined enrollment of 1,034 students as of the latest data. The area demonstrates above-average socio-educational conditions (ICSEA: 1091). The educational mix includes two primary, two secondary, and one K-12 school. Local school capacity is limited at 4.1 places per 100 residents compared to the regional average of 15.8, leading many families to travel for schooling. Note that where schools show 'n/a' for enrolments, please refer to the parent campus.

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

Clayton has 95 active public transport stops offering a mix of train and bus services. These stops are served by 45 different routes, collectively facilitating 16,349 weekly passenger trips. Transport accessibility is rated good with residents typically located 243 meters from the nearest stop.

Service frequency averages 2,335 trips per day across all routes, equating to around 172 weekly trips per individual stop.

Clayton's residents boast exceedingly positive health performance metrics with a fairly standard level of common health conditions seen across both young and old age cohorts

Clayton's health outcomes data shows notable results, with common health conditions similar across both young and elderly age groups. Approximately 46% of Clayton's total population (~11,572 people) has private health cover, compared to Greater Melbourne's 54.4%. Nationally, the average is 55.3%.

Mental health issues and asthma are the most prevalent conditions in Clayton, affecting 6.2 and 4.8% of residents respectively. 81.7% of residents report no medical ailments, compared to Greater Melbourne's 75.3%. Clayton has 7.0% (1,766 people) of its population aged 65 and over, lower than Greater Melbourne's 17.5%.

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's population is predominantly linguistically diverse, with 69.3% speaking a language other than English at home and 70.7% born overseas. Christianity is the primary religion in Clayton, accounting for 30.4% of its population. Hinduism is notably overrepresented, comprising 16.2%, compared to Greater Melbourne's average of 8.0%.

The top three ancestry groups are Chinese (22.5%), Other (20.5%), and Indian (12.3%). Sri Lankan (1.7%) and Greek (4.8%) populations are overrepresented in Clayton, while Korean (1.2%) is slightly higher than the regional average of 1.1%.

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

Clayton's median age is 25 years, which is significantly below Greater Melbourne's average of 37 and lower than the national average of 38 years. Compared to Greater Melbourne, Clayton has a higher concentration of residents aged 15-24 (37.3%) but fewer residents aged 5-14 (3.4%). This concentration of 15-24 year-olds is well above the national figure of 12.5%. According to the 2021 Census, Clayton's median age has decreased by 2.8 years to 25 from 28 previously. The population aged 15 to 24 has grown from 28.3% to 37.3%, while the 35 to 44 cohort has declined from 11.0% to 8.9% and the 45 to 54 group has dropped from 6.3% to 4.7%. By 2041, demographic projections indicate significant shifts in Clayton's age structure, with the strongest growth projected for the 25 to 34 cohort at 64%, adding 4,854 residents to reach a total of 12,475.