Colac

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

Based on analysis of ABS population updates for the broader area and new addresses validated by AreaSearch, the suburb of Colac's population is estimated at around 9,851 as of Feb 2026. This reflects an increase of 608 people (6.6%) since the 2021 Census, which reported a population of 9,243 people. The change is inferred from the resident population of 9,244 estimated by AreaSearch following examination of the latest ERP data release by the ABS in June 2024 and an additional 284 validated new addresses since the Census date. This level of population equates to a density ratio of 261 persons per square kilometer, providing significant space per person and potential room for further development. Colac's 6.6% growth since the 2021 census exceeded the SA3 area (3.1%) and the SA4 region, marking it as a growth leader in the region. Population growth for the area was primarily driven by overseas migration, which was essentially the sole driver of 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 any SA2 areas not covered by this data, AreaSearch is utilising the VIC State Government's Regional/LGA projections released in 2023 with adjustments made employing a method of weighted aggregation of population growth from LGA to SA2 levels. Growth rates by age group from these aggregations are also applied across all areas for years 2032 to 2041. Considering the projected demographic shifts, a population increase just below the median of national non-metropolitan areas is expected, with the suburb of Colac expected to grow by 652 persons to 2041 based on aggregated SA2-level projections, reflecting recording a gain of 0.5% 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

Based on AreaSearch analysis of ABS building approval numbers allocated from statistical area data, Colac has experienced around 57 dwellings receiving development approval annually. Approximately 287 homes were approved over the past five financial years, between FY-21 and FY-25, with an additional 49 approved so far in FY-26. The population has been declining recently, yet housing supply has remained adequate relative to demand, resulting in a balanced market with good buyer choice.

New homes are being built at an average expected construction cost value of $468,000, indicating a focus on the premium segment with upmarket properties. This year, $20.0 million in commercial development approvals have been recorded, suggesting balanced commercial development activity. Compared to the Rest of Vic., Colac has slightly more development, at 25.0% above the regional average per person over the five-year period.

This preserves reasonable buyer options while sustaining existing property demand, although construction activity has eased recently. New building activity shows 83.0% detached houses and 17.0% townhouses or apartments, maintaining the area's traditional low density character with a focus on family homes appealing to those seeking space. The location has approximately 219 people per dwelling approval, indicating a low density market. Looking ahead, Colac is expected to grow by 45 residents through to 2041, based on the latest AreaSearch quarterly estimate. Based on current development patterns, new housing supply should readily meet demand, offering good conditions for buyers and potentially facilitating population growth beyond current projections.

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

Changes to local infrastructure significantly influence an area's performance. AreaSearch has identified seven projects that may impact this region. Notable ones include Lake Colac School, Colac West Primary School Upgrade, Clearwater Colac, and Pound Road, Colac. The following list details those 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.

The labour market in Colac demonstrates typical performance when compared to similar areas across Australia

Colac has a balanced workforce with equal representation of white and blue collar jobs. Manufacturing and industrial sectors are prominent, with an unemployment rate of 2.7% as per AreaSearch's aggregation of statistical area data. As of December 2025, 4120 residents are employed, while the unemployment rate is 1.0% lower than Regional Vic.'s rate of 3.7%.

Workforce participation in Colac lags behind Regional Vic., at 54.2% compared to 61.5%. Census responses show that only 6.3% of residents work from home, though Covid-19 lockdown impacts should be considered. Key industries for employment among residents are manufacturing, health care & social assistance, and retail trade. The area specializes in manufacturing, with an employment share 2.9 times the regional level.

Conversely, education & training has lower representation at 5.9% compared to Regional Vic.'s average of 9.1%. Employment opportunities locally appear limited based on Census working population vs resident population comparison. During the year to December 2025, labour force decreased by 6.6%, with employment also decreasing by 6.6%, leaving unemployment relatively stable. By contrast, Regional Vic. saw an employment decline of 0.6% and a labour force decline of 0.7%, with unemployment falling slightly. Jobs and Skills Australia's national employment forecasts from May-25 suggest that while overall employment is projected to expand by 6.6% over five years and 13.7% over ten years, growth rates vary significantly between sectors. Applying these projections to Colac's employment mix indicates local employment should increase by approximately 5.1% over five years and 11.9% over ten years, assuming constant population projections.

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 shows that median income in Colac is $46,533 with an average of $53,150. This is lower than Regional Vic.'s median income of $50,954 and average income of $62,728. By September 2025, estimates based on Wage Price Index growth suggest median income will be approximately $50,372 and average income $57,535. Colac's incomes from the 2021 Census fall between the 7th and 21st percentiles nationally. The largest segment of residents earns $800 - $1,499 weekly (2,738 people), unlike the broader area where earnings in the $1,500 - $2,999 bracket lead at 30.3%. After housing costs, 85.4% of income remains, 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

Dwelling structure in Colac, as per the latest Census, consisted of 86.2% houses and 13.8% other dwellings (semi-detached, apartments, 'other' dwellings), compared to Regional Vic.'s 90.1% houses and 9.9% other dwellings. Home ownership in Colac stood at 39.8%, similar to Regional Vic., with mortgaged dwellings at 28.9% and rented dwellings at 31.3%. The median monthly mortgage repayment in the area was $1,213, lower than Regional Vic.'s average of $1,430. Median weekly rent in Colac was recorded at $260, compared to Regional Vic.'s $285. Nationally, Colac's mortgage repayments were significantly lower than the Australian 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, smaller than the Regional 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 offering a mix of train services. These are served by 7 routes that together facilitate 310 weekly passenger trips. Transport access is deemed good with residents typically residing 202 meters from the nearest stop. In this mainly residential area, outward commuting dominates; cars remain the primary mode at 91%, while walking accounts for 6%. Vehicle ownership averages 1.2 per dwelling, below regional norms. According to the 2021 Census, only 6.3% of residents work from home, which may reflect COVID-19 conditions.

Across all routes, service frequency averages 44 trips daily, equating to roughly 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, as indicated by AreaSearch's assessment of mortality rates and chronic condition prevalence. Notably, both younger and older age cohorts have high prevalence rates for common health conditions. The rate of private health cover is very low at approximately 48% of the total population (~4,721 people), compared to 50.5% across Regional Vic., with a national average of 55.7%.

The most prevalent medical conditions in the area are arthritis and mental health issues, affecting 10.8 and 9.3% of residents respectively. However, 61.8% of residents declare themselves completely clear of medical ailments, compared to 63.4% across Regional Vic. Working-age residents show a higher-than-average prevalence of chronic health conditions. The area has 25.4% of residents aged 65 and over (2,502 people), which is higher than the 23.9% in Regional Vic. Health outcomes among seniors present some challenges, with national rankings broadly in line with 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 population showed limited cultural diversity, with 87.3% being citizens, 88.4% born in Australia, and 91.6% speaking English only at home. Christianity was the predominant religion, accounting for 48.3%, slightly higher than Regional Vic's 47.3%. The top three ancestry groups were Australian (31.7%), English (31.0%), and Irish (10.6%).

Notably, Scottish ancestry was overrepresented in Colac at 9.3% compared to the regional average of 8.8%, while Samoan and Korean ancestries showed higher representation than regionally recorded, at 0.2% each respectively.

Colac hosts a notably older demographic compared to the national average

Colac's median age is 44 years, comparable to Regional Victoria's 43 years and above the national average of 38 years. Compared to Regional Vic., Colac has a higher percentage of residents aged 25-34 (14.6%) but fewer residents aged 5-14 (10.3%). Between the 2021 Census and present, the population aged 35-44 has increased from 10.6% to 11.8%, while the 65-74 age group has decreased from 12.5% to 11.6%. By 2041, Colac's age composition is expected to shift significantly. The 25-34 age group is projected to grow by 13% (192 people), reaching 1,631 from 1,438. Conversely, the 75-84 and 5-14 age groups are expected to experience population declines.