Clayton South

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

As of May 2026, the estimated population of Clayton South is around 15,427. This reflects a growth of 2,046 people since the 2021 Census, which reported a population of 13,381. The increase is inferred from AreaSearch's estimation of 15,349 residents in June 2025, based on ABS ERP data, and an additional 299 validated new addresses since the Census date. This results in a population density ratio of 1,942 persons per square kilometer, higher than the average across national locations assessed by AreaSearch. Clayton South's growth rate of 15.3% since the 2021 census exceeds both the SA3 area (7.0%) and the state average, positioning it as a growth leader in the region. Overseas migration contributed approximately 88.0% to overall population gains during recent periods.

AreaSearch's projections for Clayton South are based on ABS/Geoscience Australia projections released in 2024 with a base year of 2022. For areas not covered by this data, AreaSearch uses VIC State Government's Regional/LGA projections from 2023, adjusted using weighted aggregation methods to SA2 levels. Growth rates by age group are applied across all areas for years 2032 to 2041. By 2041, Clayton South is forecasted to have a population increase of 5,074 persons, reflecting an overall increase of 32.4% over the 16-year period.

Recent residential development output has been above average within Clayton South when compared nationally

Based on AreaSearch analysis of ABS building approval numbers, Clayton South has experienced around 85 dwellings receiving development approval each year over the past five financial years from FY-21 to FY-25. This totals an estimated 426 homes. So far in FY-26, recorded approvals amount to 28. On average, approximately 2.5 people have moved to the area per new home constructed annually during these five years, indicating solid demand that supports property values.

The average construction cost value of new homes is $475,000, which is moderately above regional levels and suggests an emphasis on quality construction. In FY-26 alone, commercial development approvals have reached $29.8 million, reflecting robust local business investment. Relative to Greater Melbourne, Clayton South records 63.0% more construction activity per person as of recent data. This increased activity creates greater choice for buyers, although there has been a recent easing in construction activity. The current new development composition is 14.0% detached houses and 86.0% medium to high-density housing. This shift from the existing pattern of 56.0% houses suggests diminishing developable land availability and responds to evolving lifestyle preferences and housing affordability needs.

With around 474 people per dwelling approval, Clayton South exhibits a developed market. According to AreaSearch's latest quarterly estimate, Clayton South is projected to add approximately 4,996 residents by 2041 if current development rates continue. However, housing supply may not keep pace with population growth under this scenario, potentially increasing competition among buyers and supporting stronger price growth.

Clayton South has very high levels of nearby infrastructure activity, ranking in the top 20% nationally

Changes in local infrastructure significantly impact an area's performance. AreaSearch has identified 25 projects that could affect this region. Notable initiatives include Sanctuary Sandringham, Sandringham Village Streetscape Masterplan, 1899-1901 Dandenong Road Mixed-Use Development, and Skylight Sandringham. The following list details those most likely to be 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.

The labour market in Clayton South shows considerable strength compared to most other Australian regions

Clayton South has an educated workforce with professional services well represented. Its unemployment rate was 3.1% as of December 2025, below Greater Melbourne's 4.8%. Employment growth over the past year was estimated at 4.3%.

Residents' participation in the workforce was somewhat lower than Greater Melbourne's average (67.2% vs. 69.9%). About a quarter of residents worked from home based on Census responses, with Covid-19 lockdown impacts considered. Key industries for employment were health care & social assistance, manufacturing, and retail trade.

Manufacturing had notable concentration with levels at 1.5 times the regional average. Construction employed only 7.1% of local workers compared to Greater Melbourne's 9.7%. Many residents commuted elsewhere for work based on Census data. Between December 2024 and December 2025, employment levels increased by 4.3%, labour force grew by 4.6%, raising the unemployment rate by 0.3 percentage points. Greater Melbourne experienced similar trends with slightly lower growth rates. National employment forecasts from Jobs and Skills Australia project a 6.6% increase over five years and 13.7% over ten years. Applying these projections to Clayton South's industry mix suggests local employment should grow by approximately 6.3% in five years and 13.4% in ten years, though this is an illustrative extrapolation not accounting for localized population changes.

Income levels sit below national averages according to AreaSearch assessment

According to AreaSearch's aggregation of the latest postcode level ATO data released on June 30, 2023, Clayton South had a median income among taxpayers of $48,722. The average income stood at $56,716. This is lower than the national average of $57,688 and compares to levels of $57,688 across Greater Melbourne respectively. Based on Wage Price Index growth of 9.62% since June 30, 2023, current estimates would be approximately $53,409 (median) and $62,172 (average) as of March 2026. Census data from 2021 shows household income ranks at the 43rd percentile ($1,630 weekly), while personal income sits at the 25th percentile. In terms of income distribution, 34.5% of individuals in Clayton South earn between $1,500 and $2,999 (5,322 individuals), which aligns with the broader area where this cohort likewise represents 32.8%. Housing affordability pressures are severe, with only 82.8% of income remaining after housing costs, ranking at the 42nd percentile. The area's SEIFA income ranking places it in the 4th decile.

Clayton South displays a diverse mix of dwelling types, with above-average rates of outright home ownership

Clayton South's dwelling structures, as per the latest Census, consisted of 56.0% houses and 43.9% other dwellings (semi-detached, apartments, 'other' dwellings). This compares to Melbourne metro's 67.9% houses and 32.1% other dwellings. Home ownership in Clayton South was 32.1%, similar to Melbourne metro, with mortgaged dwellings at 27.4% and rented ones at 40.6%. The median monthly mortgage repayment was $1,997, below the Melbourne metro average of $2,000. Median weekly rent in Clayton South was $381 compared to Melbourne metro's $390. Nationally, Clayton South's mortgage repayments were higher at $1,997 than the Australian average of $1,863, while rents exceeded the national figure of $375.

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

Family households constitute 69.8% of all households, including 31.8% couples with children, 24.3% couples without children, and 11.4% single parent families. Non-family households account for 30.2%, comprising 21.9% lone person households and 8.4% group households. The median household size is 2.7 people, higher than the Greater Melbourne average of 2.6.

Educational attainment in Clayton South aligns closely with national averages, showing typical qualification patterns and performance metrics

Clayton South's residents aged 15+ show higher educational attainment than broader averages: 39.1% have university qualifications compared to 26.7% in SA3 area and 29.8% in SA4 region. Bachelor degrees are most common at 23.7%, followed by postgraduate qualifications (13.5%) and graduate diplomas (1.9%). Vocational pathways account for 21.9% of qualifications, with advanced diplomas at 10.1% and certificates at 11.8%. Educational participation is high: 30.5% are currently enrolled in formal education, including 9.7% in tertiary, 6.8% in primary, and 5.4% in secondary education.

Educational participation is notably high, with 30.5% of residents currently enrolled in formal education. This includes 9.7% in tertiary education, 6.8% in primary education, and 5.4% pursuing secondary education.

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

Clayton South has 72 active public transport stops, all of which are bus stops. These stops are served by 16 different routes that together facilitate 3,682 weekly passenger trips. The area's transport accessibility is rated as excellent, with residents typically living within 180 meters of the nearest stop. Most residents commute outwards from Clayton South, primarily using cars (78%), while 14% use trains. On average, there are 1.2 vehicles per dwelling in the area. According to the 2021 Census, 23.3% of residents work from home, which may be due to COVID-19 conditions.

The service frequency averages 526 trips per day across all routes, equating to approximately 51 weekly trips per individual stop.

Clayton South's residents are extremely healthy with both young and old age cohorts seeing low prevalence of common health conditions

Analysis of health metrics shows strong performance throughout Clayton South. Mortality rates and chronic condition prevalence were low across both young and old age cohorts. Private health cover was found to be relatively low at approximately 49% of the total population (around 7,608 people), compared to 56.7% across Greater Melbourne and a national average of 55.7%.

The most common medical conditions in the area were arthritis and asthma, impacting 5.7 and 5.3% of residents respectively. Around 77.4% of residents declared themselves completely clear of medical ailments, compared to 72.6% across Greater Melbourne. Approximately 14.5% of residents were aged 65 and over (around 2,236 people). Health outcomes among seniors were particularly strong, with national rankings broadly in line with the general population.

Clayton South 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 South has a high level of cultural diversity, with 70.4% of its population speaking a language other than English at home and 65.5% born overseas. Christianity is the predominant religion in Clayton South, comprising 39.3% of people. However, Buddhism is notably overrepresented compared to Greater Melbourne's average, making up 10.6% of Clayton South's population.

In terms of ancestry, 'Other' is the largest group at 22.7%, followed by Chinese (17.8%) and Indian (10.8%), all higher than regional averages. There are also notable overrepresentations of Greek (9.2%), Sri Lankan (1.5%), and Vietnamese (4.3%) groups compared to regional figures.

Clayton South hosts a young demographic, positioning it in the bottom quartile nationwide

Clayton South's median age is 34 years, which is lower than Greater Melbourne's average of 37 and Australia's national average of 38 years. Compared to Greater Melbourne, Clayton South has a higher proportion of residents aged 25-34 (24.5%), but fewer residents aged 5-14 (8.5%). This 25-34 age group concentration is significantly higher than the national average of 14.6%. Between the 2021 Census and present, the proportion of residents aged 25 to 34 has increased from 23.1% to 24.5%, while the proportion of those aged 45 to 54 has decreased from 10.8% to 10.1%. By 2041, population forecasts indicate substantial demographic changes for Clayton South, with the strongest projected growth in the 25-34 age group, which is expected to grow by 23%, adding 886 residents and reaching a total of 4,666 residents.