Colac

An assessment of population growth drivers in Colac reveals an overall ranking slightly below national averages considering recent, and medium term trends

As of Feb 2026, the population of Colac is estimated at around 9,851, reflecting an increase of 608 people since the 2021 Census. This increase represents a growth rate of 6.6%. The resident population was estimated at 9,244 by AreaSearch following examination of the latest ERP data release by the ABS in June 2024, with an additional 284 validated new addresses since the Census date contributing to this change. This results in a population density ratio of 261 persons per square kilometer. Colac's growth rate exceeded that of its SA3 area (3.1%) and SA4 region, marking it as a growth leader in the region. Overseas migration was primarily responsible for driving population gains during recent periods.

AreaSearch is adopting ABS/Geoscience Australia projections released in 2024 with a base year of 2022 for each SA2 area. For areas not covered by this data, AreaSearch utilises VIC State Government's Regional/LGA projections released in 2023, adjusted 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. Considering projected demographic shifts, the suburb of Colac is expected to grow by just below the median of national non-metropolitan areas, with an increase of 640 persons to 2041 based on aggregated SA2-level projections, reflecting a reduction of 0.2% in total over the 17 years.

AreaSearch analysis of residential development drivers sees Colac recording a relatively average level of approval activity when compared to local markets analysed countrywide

Colac has seen approximately 57 dwelling approvals annually based on AreaSearch analysis. Between FY-21 and FY-25, around 288 homes were approved, with another 47 approved so far in FY-26. Despite population decline, housing supply has been adequate relative to demand.

The average new home value is $468,000, indicating a focus on premium properties. This year, Colac has seen $20.0 million in commercial development approvals. Compared to the rest of Victoria, Colac has slightly more development per person over the past five years.

New building activity consists mainly of detached houses (83.0%) and townhouses/apartments (17.0%), maintaining low-density character. There are approximately 213 people per dwelling approval in Colac. With stable or declining population expected, housing pressure is likely to remain low, potentially benefiting buyers.

Colac has moderate levels of nearby infrastructure activity, ranking in the 49thth percentile nationally

The performance of a region is significantly impacted by changes in local infrastructure. AreaSearch has identified seven projects that could influence this area. Notable initiatives include Lake Colac School, Colac West Primary School Upgrade, Clearwater Colac, and Pound Road, Colac. The following list details those projects likely to have the most relevance.

Professional plan users can use the search below to filter and access additional projects.

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While Colac retains a healthy unemployment rate of 2.8%, recent employment declines have impacted its national performance ranking

Colac has a balanced workforce with both white and blue collar jobs, strongly represented in manufacturing and industrial sectors. The unemployment rate was 2.8% as of September 2025, based on AreaSearch aggregation of statistical area data. In September 2025, 4,206 residents were employed while the unemployment rate was 1.0% lower than Rest of Vic.'s rate of 3.8%.

Workforce participation in Colac was 55.7%, compared to Rest of Vic.'s 61.4%. According to Census responses, only 6.3% of residents worked from home. The key industries for employment among residents were manufacturing, health care & social assistance, and retail trade. Manufacturing had a particularly high representation with an employment share of 2.9 times the regional level.

Conversely, education & training showed lower representation at 5.9% compared to the regional average of 9.1%. The area appeared to offer limited local employment opportunities, as indicated by the count of Census working population versus resident population. Between September 2024 and September 2025, the labour force decreased by 3.1%, while employment decreased by 3.2%, causing unemployment to rise by 0.1 percentage points. In comparison, Rest of Vic. recorded an employment decline of 0.7% and a labour force decline of 0.6%, with marginal unemployment increase. Jobs and Skills Australia's national employment forecasts from May-25 suggested potential future demand within Colac. These projections estimated national employment growth of 6.6% over five years and 13.7% over ten years. However, applying these projections to Colac's employment mix indicated local employment should grow by 5.1% over five years and 11.9% over ten years.

Income metrics place the area in the bottom 10% of locations nationally according to AreaSearch analysis

AreaSearch's latest postcode level ATO data for financial year ending June 2023 indicates that median income in Colac is $46,533 and average income stands at $53,150. This contrasts with Rest of Vic.'s median income of $50,954 and average income of $62,728 during the same period. Based on Wage Price Index growth of 8.25% from financial year ending June 2023 to September 2025, estimated median income in Colac would be approximately $50,372 and average income $57,535 by that date. According to the 2021 Census, incomes in Colac fall between the 7th and 21st percentiles nationally for households, families, and individuals. The largest segment of residents earns $800 - $1,499 weekly, comprising 27.8% (2,738 residents), compared to the broader area where the $1,500 - $2,999 bracket leads at 30.3%. After accounting for housing costs, 85.4% of income remains in Colac, ranking at the 10th percentile nationally.

Colac is characterized by a predominantly suburban housing profile, with a higher proportion of rental properties than the broader region

In Colac, as per the latest Census evaluation, 86.2% of dwellings were houses, with the remaining 13.8% being semi-detached, apartments, or other types. This compares to Non-Metro Vic.'s figures of 90.1% houses and 9.9% other dwellings. Home ownership in Colac stood at 39.8%, similar to Non-Metro Vic., with mortgaged dwellings at 28.9% and rented ones at 31.3%. The median monthly mortgage repayment was $1,213, lower than Non-Metro Vic.'s average of $1,430. The median weekly rent in Colac was $260, compared to Non-Metro Vic.'s $285. Nationally, Colac's mortgage repayments were significantly lower at $1,213 versus Australia's average of $1,863, and rents were substantially below the national figure of $375.

Colac features high concentrations of lone person households and group households, with a lower-than-average median household size

Family households constitute 56.8% of all households, including 19.2% couples with children, 24.4% couples without children, and 11.7% single parent families. Non-family households account for the remaining 43.2%, with lone person households at 38.7% and group households comprising 4.4%. The median household size is 2.2 people, which is smaller than the Rest of Vic. average of 2.4.

Colac faces educational challenges, with performance metrics placing it in the bottom quartile of areas assessed nationally

The area's university qualification rate is 12.8%, significantly lower than Victoria's average of 33.4%. Bachelor degrees are the most common at 9.5%, followed by postgraduate qualifications (2.0%) and graduate diplomas (1.3%). Vocational credentials are prevalent, with 36.8% of residents aged 15+ holding them, including advanced diplomas (8.5%) and certificates (28.3%). A total of 24.4% of the population is actively engaged in formal education, comprising 9.5% in primary, 6.8% in secondary, and 1.8% in tertiary education.

A substantial 24.4% of the population actively pursues formal education. This includes 9.5% in primary education, 6.8% in secondary education, and 1.8% pursuing tertiary education.

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

Colac has 56 active public transport stops operating, offering a mix of train services. These stops are served by 7 different routes, collectively facilitating 310 weekly passenger trips. Transport accessibility is rated as good, with residents typically located 202 meters from the nearest stop. Most residents commute outward due to its residential nature. Car remains the dominant mode at 91%, while 6% walk. Vehicle ownership averages 1.2 per dwelling, below the regional average.

According to the 2021 Census, a relatively low 6.3% of residents work from home, which may reflect COVID-19 conditions. Service frequency averages 44 trips per day across all routes, equating to approximately 5 weekly trips per individual stop.

Health performance in Colac is well below average with prevalence of common health conditions notable across both younger and older age cohorts

Colac faces significant health challenges, according to AreaSearch's assessment. Mortality rates and chronic condition prevalence are notably high across both younger and older age cohorts. Only approximately 48% (~4,721 people) of Colac residents have private health cover, compared to Victoria's 50.5%.

Nationally, the average is 55.7%. The most prevalent conditions in Colac are arthritis (10.8%) and mental health issues (9.3%). Only 61.8% of residents report being free from medical ailments, compared to Rest of Vic.'s 63.4%. Working-age residents have a higher-than-average prevalence of chronic health conditions. As of 2021, Colac has 25.2% (2,482 people) aged 65 and over, exceeding Victoria's 23.9%. Health outcomes among seniors present challenges, aligning with national rankings for the general population.

Colac ranks below the Australian average when compared to other local markets across a number of language and cultural background related metrics

Colac's cultural diversity was found to be below average, with 87.3% of its population being citizens, 88.4% born in Australia, and 91.6% speaking English only at home. The main religion in Colac is Christianity, which constitutes 48.3% of the population, compared to 47.3% across Rest of Vic. Regarding ancestry, the top three represented groups are Australian (31.7%), English (31.0%), and Irish (10.6%).

Notably, Scottish representation is higher in Colac at 9.3%, compared to 8.8% regionally. Samoan representation is also notable at 0.2%, compared to the regional figure of 0.1%. Korean representation stands out at 0.2%, while the regional figure is 0.0%.

Colac hosts a notably older demographic compared to the national average

Colac's median age is 44 years, similar to Rest of Vic.'s 43, and above the national average of 38 years. Compared to Rest of Vic., Colac has a higher proportion of residents aged 25-34 (14.6%) but fewer residents aged 5-14 (10.3%). Between 2021 Census and present, the 35-44 age group grew from 10.6% to 11.8%, while the 65-74 cohort declined from 12.5% to 11.7%. By 2041, Colac's age composition is expected to shift notably. The 25-34 group will grow by 12% (174 people), reaching 1,613 from 1,438. Conversely, the 75-84 and 5-14 cohorts are projected to decline in population.