Colac

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

As per AreaSearch's analysis using ABS population updates and new addresses validated since May 2026, the suburb of Colac has an estimated population of around 9,153. This figure represents a decrease of 90 people (1.0%) from the 2021 Census count of 9,243 individuals. The change is inferred from AreaSearch's estimate of the resident population based on their examination of the latest ERP data release by the ABS in June 2025 and an additional 284 validated new addresses since the Census date. This results in a population density ratio of 243 persons per square kilometer, indicating significant space per person and potential for further development. Compared to other SA3 areas, Colac experienced a relatively lower decline of 1.0% since the 2021 census, outperforming the broader area's decline of 1.6%. Overseas migration was primarily responsible for population growth in recent periods.

AreaSearch is employing ABS/Geoscience Australia projections for each SA2 area, released in 2024 with a base year of 2022, and VIC State Government's Regional/LGA projections from 2023 adjusted using weighted aggregation methods for areas not covered by the ABS data. Based on these aggregated SA2-level projections, Colac is expected to record a population increase just below the median of national non-metropolitan areas by 2041. The suburb is projected to grow by 633 persons over this period, reflecting an overall gain of 6.9%.

Residential development activity is lower than average in Colac according to AreaSearch's national comparison of local real estate markets

Colac has received approximately 57 dwelling approvals annually based on AreaSearch analysis. Over the past five financial years, from FY21 to FY25, around 287 homes were approved, with an additional 77 approved in FY26 as of now. The population decline in recent years has maintained a balanced housing supply relative to demand, offering good buyer choice.

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

This has preserved reasonable buyer options while sustaining existing property demand. However, construction activity has recently eased. The new building activity shows 83.0% detached houses and 17.0% townhouses or apartments, maintaining Colac's traditional low-density character with a focus on family homes. There are approximately 220 people per dwelling approval in the location, indicating a low-density market. Looking ahead, Colac is projected to grow by 633 residents through to 2041 according to 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 top 50% nationally

Infrastructure changes significantly influence a region's performance. AreaSearch has identified seven projects expected to impact the area. Key initiatives include Lake Colac School, Colac West Primary School Upgrade, Clearwater Colac, and Pound Road, Colac. The following details those considered 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 both white and blue-collar jobs. Manufacturing and industrial sectors are strongly represented. The unemployment rate is 2.6%, according to AreaSearch's aggregation of statistical area data.

As of December 2025, 4,135 residents are employed while the unemployment rate is 1.1% lower than Regional Vic.'s rate of 3.7%. Workforce participation is at 55.0%, compared to Regional Vic.'s 61.0%. 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.

Manufacturing has a particularly high share at 2.9 times the regional level. Conversely, education & training shows lower representation at 5.9% compared to Regional Vic.'s average of 9.1%. The area appears to offer limited local employment opportunities, with fewer residents working locally than living there. Between December 2024 and December 2025, the labour force decreased by 6.5%, with employment also decreasing by 6.5%, leaving unemployment broadly unchanged. In comparison, 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 national employment could expand by 6.6% over five years and 13.7% over ten years. Applying these projections to Colac's employment mix suggests local employment should increase by 5.1% over five years and 11.9% over ten years, although this is a simple extrapolation for illustrative purposes and does not consider local 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 2023 shows that in Colac, median income is $46,533 and average income is $53,150. This is lower than Regional Vic.'s median income of $50,954 and average income of $62,728. By March 2026, these figures are estimated to be approximately $51,009 (median) and $58,263 (average), based on a 9.62% Wage Price Index growth since financial year 2023. The 2021 Census data indicates that household, family, and personal incomes in Colac fall between the 7th and 21st percentiles nationally. In Colac, 27.8% of residents earn $800 - $1,499 weekly, compared to the broader area where 30.3% earn $1,500 - $2,999 weekly. After housing costs, 85.4% of income remains in Colac, which ranks 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 evaluated at the latest Census, comprised 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 was at 39.8%, similar to Regional Vic., with the rest of dwellings either mortgaged (28.9%) or rented (31.3%). The median monthly mortgage repayment in Colac was $1,213, below Regional Vic.'s average of $1,430. Median weekly rent in Colac was recorded at $260, compared to Regional Vic.'s $285 and the national figure of $375. Nationally, Colac's mortgage repayments were significantly lower than the Australian average of $1,863.

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 comprise the remaining 43.2%, with lone person households at 38.7% and group households making up 4.4%. The median household size is 2.2 people, which is 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%. This disparity presents both a challenge and an opportunity for targeted educational initiatives. Bachelor degrees are the most common at 9.5%, followed by postgraduate qualifications (2.0%) and graduate diplomas (1.3%). Trade and technical skills are prominent, with 36.8% of residents aged 15+ holding vocational credentials - advanced diplomas (8.5%) and certificates (28.3%).

A substantial 24.4% of the population is actively pursuing formal education, including 9.5% in primary education, 6.8% in secondary education, and 1.8% in 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 within its boundaries. These comprise a mix of train services and are serviced by 7 individual routes. Together, these routes provide a total of 310 weekly passenger trips. Transport accessibility is rated as good, with residents typically located 202 meters from the nearest transport stop. As a primarily residential area, most residents commute outward. The car remains the dominant mode of transportation 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

Health data indicates significant health challenges in Colac. AreaSearch's assessment shows notable prevalence of common health conditions across both younger and older age cohorts. Private health cover is very low, at approximately 48% of the total population (~4,387 people), compared to 50.5% in Regional Vic.

and a national average of 55.7%. The most prevalent medical conditions are arthritis (10.8%) and mental health issues (9.3%). 61.8% of residents declare themselves completely clear of medical ailments, compared to 63.4% across Regional Vic. Working-age residents show above average prevalence of chronic health conditions. Colac has 26.0% of residents aged 65 and over (2,379 people), 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 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 predominant religion in Colac is Christianity, accounting for 48.3% of the population, compared to 47.3% across Regional Vic. In terms of ancestry, the top three represented groups are Australian (31.7%), English (31.0%), and Irish (10.6%).

Notably, Scottish representation in Colac is higher at 9.3%, compared to 8.8% regionally. Samoan and Korean representations are also higher than regional averages, at 0.2% each for both groups.

Colac hosts a notably older demographic compared to the national average

Colac's median age is 44 years, similar to Regional Vic.'s 43 and above the national average of 38 years. Compared to Regional Vic., Colac has a higher percentage of residents aged 25-34 (13.9%) but fewer residents aged 5-14 (10.3%). Between the 2016 and 2021 censuses, the population aged 35-44 grew from 10.6% to 11.4%, while the 45-54 cohort declined from 11.2% to 10.4%. By 2041, Colac's age composition is expected to shift notably. The 25-34 group is projected to grow by 22% (274 people), reaching 1,547 from 1,272. Conversely, the 75-84 and 55-64 cohorts are expected to experience population declines.