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 Feb 2026, Clayton South's population is estimated at around 15,202, reflecting an increase of 1,821 people since the 2021 Census. The 2021 Census reported a population of 13,381 in the suburb. This change was inferred from AreaSearch's estimate of 15,138 residents following examination of ABS' latest ERP data release (June 2024), along with an additional 293 validated new addresses since the Census date. Clayton South's population density as of Feb 2026 is approximately 1,914 persons per square kilometer. This growth exceeds the SA3 area average of 6.9% and the national average, marking Clayton South as a growth leader in the region. Overseas migration contributed about 88.0% of overall population gains during recent periods.

AreaSearch's projections for Clayton South are based on ABS/Geoscience Australia data released in 2024 with a base year of 2022, and VIC State Government's Regional/LGA projections from 2023, adjusted using weighted aggregation methods. By 2041, the suburb is projected to have increased its population by 5,733 persons, reflecting an overall increase of 37.3% over the 17-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, allocated from statistical area data, Clayton South has experienced approximately 85 dwellings receiving development approval per year. Over the past five financial years, between FY21 and FY25, around 426 homes were approved, with an additional 15 approved so far in FY26. On average, about 2.5 people have moved to the area per new home constructed over these five years, indicating strong demand that supports property values.

New homes are being built at an average expected construction cost of $475,000, which is higher than regional norms, reflecting quality-focused development. This financial year has seen around $29.8 million in commercial approvals registered, suggesting robust local business investment. Compared to Greater Melbourne, Clayton South shows 61.0% higher building activity per person, offering greater choice for buyers, although development activity has moderated recently. New development consists of 14.0% detached dwellings and 86.0% medium and high-density housing, providing accessible entry options that appeal to downsizers, investors, and entry-level buyers. This trend represents a notable shift from the area's existing housing composition, which is currently 56.0% houses, indicating decreasing availability of developable sites and reflecting changing lifestyles and the need for more diverse, affordable housing options. With around 474 people per dwelling approval, Clayton South shows a developed market.

According to AreaSearch's latest quarterly estimate, Clayton South is projected to add approximately 5,669 residents by 2041. If current construction levels persist, housing supply may lag population growth, potentially intensifying buyer competition and underpinning price growth.

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

A total of 26 infrastructure projects have been identified by AreaSearch as potentially impacting the area. These include major developments such as Sanctuary Sandringham, Sandringham Village Streetscape Masterplan, 1899-1901 Dandenong Road Mixed-Use Development, and Skylight Sandringham. 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.

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AreaSearch analysis places Clayton South well above average for employment performance across multiple indicators

Clayton South has a highly educated workforce with strong representation in professional services. Its unemployment rate is 3.1%, lower than the national average. Over the past year, estimated employment growth was 4.3%.

As of December 2025, 8,647 residents are employed, with an unemployment rate of 1.7% below Greater Melbourne's rate of 4.8%. Workforce participation is somewhat lower at 68.5%, compared to Greater Melbourne's 71.3%. A moderate 23.3% of residents work from home. Employment is concentrated in health care & social assistance, manufacturing, and retail trade.

Manufacturing shows particularly strong specialization with an employment share 1.5 times the regional level. Conversely, construction has lower representation at 7.1% versus the regional average of 9.7%. Many residents commute elsewhere for work. Over a 12-month period ending in May-25, employment increased by 4.3% alongside labour force growth of 4.6%, causing unemployment to rise by 0.3 percentage points. 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 employment mix suggests local employment should increase by 6.3% over five years and 13.4% over ten years, assuming constant population projections for illustrative purposes.

Income levels sit below national averages according to AreaSearch assessment

AreaSearch's latest postcode level ATO data for financial year 2023 shows that Clayton South has lower income than the national average. The median income is $48,722 and the average is $56,716. In contrast, Greater Melbourne's median income is $57,688 and average is $75,164. Based on Wage Price Index growth of 8.25% since financial year 2023, current estimates for Clayton South are approximately $52,742 (median) and $61,395 (average) as of September 2025. According to Census 2021 income data, household income ranks at the 43rd percentile ($1,630 weekly), while personal income is at the 25th percentile. The largest income segment comprises 34.5% earning $1,500 - 2,999 weekly (5,244 residents). 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

In Clayton South, as per the most recent Census evaluation, 56.0% of dwellings were houses, with the remaining 43.9% comprising semi-detached homes, apartments, and other types of accommodation. This differs from Melbourne's metropolitan area, where 67.9% of dwellings are houses and 32.1% are other types. Home ownership in Clayton South stood at 32.1%, similar to Melbourne metro, with mortgaged properties at 27.4% and rented dwellings at 40.6%. The median monthly mortgage repayment in the area was $1,997, lower than Melbourne's average of $2,000. The median weekly rent in Clayton South was $381, compared to Melbourne's $390. Nationally, Clayton South's mortgage repayments were higher 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 account for 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 make up the remaining 30.2%, with lone person households at 21.9% and group households comprising 8.4%. The median household size is 2.7 people, larger 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 educational attainment exceeds broader benchmarks. Among residents aged 15+, 39.1% hold university qualifications, compared to 26.7% in the SA3 area and 29.8% in the SA4 region. Bachelor degrees are the 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, with 30.5% 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 operational public transport stops, all of which are bus stops. These stops are served by 16 different routes, offering a total of 3,682 weekly passenger trips. Transport accessibility is high, with residents typically residing 180 meters from the nearest stop. Most residents commute outward due to Clayton South's residential nature. Cars remain the primary mode of transport at 78%, while trains account for 14%. On average, there are 1.2 vehicles per dwelling.

According to the 2021 Census, 23.3% of residents work from home, which may be influenced by COVID-19 conditions. The service frequency averages 526 trips daily 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 (~7,497 people), compared to 56.7% across Greater Melbourne and 55.7% nationally.

The most common medical conditions were arthritis (impacting 5.7%) and asthma (5.3%), while 77.4% declared themselves completely clear of medical ailments, compared to 72.6% across Greater Melbourne. As of the latest data from 2016, 14.4% of residents were aged 65 and over (2,189 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, making up 39.3% of the population. Buddhism is notably overrepresented, comprising 10.6%, compared to the Greater Melbourne average of 4.2%.

The top three ancestry groups are Other at 22.7%, Chinese at 17.8%, and Indian at 10.8%, each substantially higher than regional averages. Notable ethnic group divergences include Greeks at 9.2% (vs regional 2.7%), Sri Lankans at 1.5% (vs 0.8%), and Vietnamese at 4.3% (vs 1.9%).

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 (24.0%), but fewer residents aged 5-14 (8.5%). This concentration of 25-34 year-olds is significantly higher than the national average of 14.4%. Between the 2021 Census and present, the proportion of Clayton South's population aged 25 to 34 has increased from 23.1% to 24.0%, while the proportion of those aged 75 to 84 has decreased from 5.6% to 4.8%. By 2041, population forecasts indicate substantial demographic changes in Clayton South, with the strongest projected growth in the 25 to 34 age group (28%), adding 1,017 residents to reach a total of 4,666.