Clayton

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

As per ABS population updates for the broader area and new addresses validated by AreaSearch, the estimated population of Clayton was approximately 25,795 as of May 2026. This figure represents an increase of 6,807 individuals (35.8%) since the 2021 Census, which reported a population of 18,988 people in the suburb of Clayton. The change is inferred from AreaSearch's estimate of 25,663 residents following examination of the latest ERP data release by the ABS in June 2025 and an additional 454 validated new addresses since the Census date. This population level results in a density ratio of 3,298 persons per square kilometer, placing Clayton in the upper quartile relative to national locations assessed by AreaSearch. Clayton's growth rate of 35.8% since the 2021 census exceeded both the state average (9.3%) and the national average. The primary driver for population growth was overseas migration, contributing approximately 99.0% of overall population gains during recent periods.

AreaSearch is using ABS/Geoscience Australia projections for each SA2 area, released in 2024 with a base year of 2022. For areas not covered by this data, AreaSearch employs the VIC State Government's Regional/LGA projections from 2023 with adjustments made via 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 increases in the top quartile of statistical areas nationally are forecasted, with Clayton expected to grow by 9,806 persons to 2041 based on aggregated SA2-level projections, reflecting an increase of 37.5% in total over these 16 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 452 homes between FY-21 and FY-25. So far in FY-26, 65 approvals have been recorded. On average, 5.8 new residents per year are associated with every home built during this period, indicating demand outstripping supply.

This typically leads to 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, Clayton has seen $15.0 million in commercial development approvals, indicating steady commercial investment activity. Compared to Greater Melbourne, Clayton shows approximately 75% of the construction activity per person and places among the 58th percentile nationally when measured against other areas assessed. New building activity comprises 15.0% detached houses and 85.0% attached dwellings, reflecting a shift towards higher-density living.

This caters to downsizers, investors, and first-home buyers seeking more affordable entry points. This trend represents a notable change from the area's existing housing mix, currently at 36.0% houses. It suggests decreasing availability of developable sites and reflects changing lifestyles and the need for diverse, affordable housing options. Clayton has around 262 people per dwelling approval, indicating a developing market. Future projections estimate Clayton will add 9,674 residents by 2041, according to the latest AreaSearch quarterly estimate. If 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 20% nationally

The performance of an area can significantly influenced by changes in local infrastructure, major projects, and planning initiatives. AreaSearch has identified a total of 33 such projects that could impact the area. Notable among these are 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 was 2.0% as of December 2025, lower than Greater Melbourne's 4.8%. Employment growth over the past year was estimated at 4.3%.

As of December 2025, 15,769 residents were employed with an unemployment rate of 2.8%, below Greater Melbourne's rate. Workforce participation was 66.6%, slightly lower than Greater Melbourne's 69.9%. A moderate 22.8% of residents worked from home in the Census response, considering Covid-19 lockdown impacts. Leading employment industries were health care & social assistance, retail trade, and accommodation & food.

Clayton had a particular specialization in accommodation & food with an employment share 1.8 times the regional level, while construction had limited presence at 5.6% compared to 9.7% regionally. There were 1.7 workers per resident as of the Census, indicating it functioned as an employment hub hosting more jobs than residents and attracting workers from surrounding areas. Over the 12 months to December 2025, employment increased by 4.3% while labour force increased by 4.5%, causing the unemployment rate to rise by 0.2 percentage points. In comparison, Greater Melbourne saw employment grow by 2.4%, labour force expand by 2.8%, and unemployment rise by 0.3 percentage points. Jobs and Skills Australia's national employment forecasts from May-25 suggest potential future demand within Clayton. National employment is forecast to expand by 6.6% over five years and 13.7% over ten years, with growth rates differing significantly between industry sectors. Applying these projections to Clayton's employment mix suggests local employment should increase by 6.5% over five years and 13.6% over ten years, noting this is a simple weighting extrapolation for illustrative purposes and does not consider localised population projections.

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

Clayton suburb's median income among taxpayers is $38,403 according to AreaSearch data based on ATO figures for financial year 2023. The average income stands at $47,835 in Clayton. Greater Melbourne's median and average incomes are $57,688 and $75,164 respectively. By March 2026, estimated median and average incomes in Clayton would be approximately $42,097 and $52,437 based on a 9.62% Wage Price Index growth since financial year 2023. Census 2021 data shows individual incomes at the 10th percentile are $594 weekly, while household incomes perform better at the 35th percentile. Income analysis reveals that 31.4% of Clayton's population (8,099 individuals) fall within the $1,500 - 2,999 income range, similar to the metropolitan region where 32.8% occupy this bracket. Housing affordability pressures are severe in Clayton, with only 77.7% of income remaining, ranking at the 27th percentile. The suburb'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 latest Census evaluation, houses comprised 35.5% of dwellings while other types such as semi-detached homes, apartments, and 'other' dwellings made up 64.4%. In contrast, Melbourne metropolitan area had 67.9% houses and 32.1% 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 in Clayton 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 Australia's average of $1,863 and its median weekly 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% couples with children, 23.1% couples without children, and 7.7% 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 higher proportion of university qualifications at 50.5%, compared to the SA4 region's 29.8% and Australia's 30.4%. This educational advantage is notable with bachelor degrees being the most prevalent at 28.1%, followed by postgraduate qualifications at 20.6%, and graduate diplomas at 1.8%. Vocational pathways account for 17.7% of qualifications, including advanced diplomas at 9.2% and certificates at 8.5%. Educational participation is high with 46.8% of residents currently enrolled in formal education, comprising 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 offering a mix of train and bus services. These are served by 42 routes, facilitating 12,759 weekly passenger trips in total. Residents enjoy good transport accessibility, with an average distance of 242 meters to the nearest stop. Clayton is predominantly residential, with most commuters traveling outward. Cars remain the primary mode of transport at 62%, followed by trains at 16% and buses at 9%. Vehicle ownership stands at 0.9 per dwelling, below the regional average.

According to the 2021 Census, 22.8% of residents work from home, which may be influenced by COVID-19 conditions. Service frequency averages 1,822 trips daily across all routes, equating to around 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 according to AreaSearch's evaluation of mortality rates and chronic condition prevalence. The prevalence of common health conditions is low among Clayton's general population but higher than the national average among older, at-risk cohorts. Private health cover is extremely low in Clayton, with approximately 46% of the total population (~11,829 people), compared to 56.7% across Greater Melbourne and a national average of 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 clear of medical ailments, compared to 72.6% across Greater Melbourne. Clayton has 6.8% of residents aged 65 and over (1,754 people), which is lower than the 15.0% in Greater Melbourne but 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 one of the highest levels of cultural diversity in Australia, with 69.3% of its residents speaking a language other than English at home and 70.7% born overseas. Christianity is the predominant religion in Clayton, accounting for 30.4% of the population. However, Hinduism is significantly overrepresented, comprising 16.2% compared to the Greater Melbourne average of 4.4%.

In terms of ancestry, Chinese residents make up 22.5%, which is substantially higher than the regional average of 6.5%. The 'Other' category comprises 20.5%, also significantly higher than the regional average of 14.6%. Indian ancestry is another notable group, making up 12.3% compared to the regional average of 4.2%. There are further divergences in the representation of Sri Lankan (1.7% vs 0.8%), Greek (4.8% vs 2.7%) and Korean (1.2% vs 0.3%) ethnic groups in Clayton compared to the region as a whole.

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

Clayton's median age was 24 years as of the 2021 Census, which is notably lower than Greater Melbourne's 37 and significantly below the national average of 38 years. Relative to Greater Melbourne, Clayton had a higher concentration of residents aged 15-24 (38.1%) but fewer residents aged 5-14 (3.2%). This concentration of 15-24 year-olds was well above the national average of 12.7%. Since the 2021 Census, younger residents have shifted the median age down by 3.6 years to 24. Notably, the 15 to 24 age group grew from 28.3% to 38.1% of Clayton's population, while the 25 to 34 cohort increased from 30.6% to 31.7%. Conversely, the 35 to 44 cohort declined from 11.0% to 9.0%, and the 45 to 54 group dropped from 6.3% to 4.4%. By 2041, Clayton is expected to see notable shifts in its age composition, with the 25 to 34 group projected to grow by 54% (4,402 people), reaching 12,580 from 8,177.