Diggers Rest

Diggers Rest lies within the top 10% of areas nationally in terms of population growth performance according to AreaSearch analysis of short and medium-term trends

The population of Diggers Rest is estimated at around 7,733 as of Feb 2026. This reflects an increase from the 2021 Census figure of 5,669 people, marking a growth of 2,064 individuals (36.4%). This increase was inferred from AreaSearch's resident population estimate of 7,402 based on ERP data released by ABS in June 2024, plus an additional 695 validated new addresses since the Census date. The population density is approximately 114 persons per square kilometer. Diggers Rest's growth rate exceeded both national (9.9%) and state averages since the 2021 census. Interstate migration contributed about 73.0% of overall population gains during recent periods, with all demographic factors showing positive trends.

AreaSearch uses ABS/Geoscience Australia projections for each SA2 area released in 2024 with a base year of 2022. For areas not covered by this data, VIC State Government's Regional/LGA projections from 2023 are used with adjustments employing weighted aggregation methods to SA2 levels. Future population trends predict exceptional growth for Diggers Rest, placing it in the top 10 percent of national statistical areas. By 2041, the suburb is expected to expand by 8,679 persons based on aggregated SA2-level projections, reflecting a gain of 108.0% over the 17-year period.

The level of residential development activity in Diggers Rest was found to be higher than 90% of real estate markets across the country

Diggers Rest averaged approximately 237 new dwelling approvals annually between FY-21 and FY-25. A total of 1,187 homes were approved during this period, with an additional 66 approved in FY-26. This averages to around 2.8 people moving to the area per new home constructed over the past five financial years.

The average construction cost value for new homes is approximately $320,000. In FY-26, commercial approvals totalled $235,000. Diggers Rest has seen 144.0% more new home approvals per person compared to Greater Melbourne since FY-21. Building activity has slowed in recent years but remains well above the national average, reflecting strong developer confidence. The majority of new building activity consists of detached dwellings (96.0%), with townhouses or apartments making up 4.0%, maintaining the area's traditional low density character.

There are approximately 33 people per dwelling approval in Diggers Rest, indicating growth characteristics. According to AreaSearch's latest quarterly estimate, Diggers Rest is projected to gain 8,348 residents by 2041. Building activity is keeping pace with population growth projections, though increased competition among buyers may arise as the population expands.

Diggers Rest has strong levels of nearby infrastructure activity, ranking in the top 30% nationally

The performance of an area can significantly influenced by changes in local infrastructure, major projects, and planning initiatives. AreaSearch has identified a total of 45 projects that are expected to impact the area. Notable projects include the proposed mixed-use precinct Diggers Rest Town Centre, Grandview Estate, Nightjar Estate, and Mary St, Diggers Rest. 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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Employment conditions in Diggers Rest demonstrate strong performance, ranking among the top 35% of areas assessed nationally

Diggers Rest has a skilled workforce with diverse sector representation. Its unemployment rate is 2.8%, lower than Greater Melbourne's 4.8%. Employment stability over the past year is evident, with an unemployment rate of 2.0% as of December 2025.

Workforce participation in Diggers Rest is high at 80.2%, compared to Greater Melbourne's 71.3%. A significant portion of residents work from home, with 25.6% doing so according to Census responses. Leading employment industries include construction, health care & social assistance, and transport, postal & warehousing. The area has a strong specialization in transport, postal & warehousing, with an employment share 2.1 times the regional level.

However, professional & technical services are under-represented, with only 6.0% of Diggers Rest's workforce compared to Greater Melbourne's 10.1%. Local employment opportunities appear limited, as indicated by the working population vs resident population count. Between December 2024 and December 2025, the labour force decreased by 0.5%, while employment declined by 0.4% in Diggers Rest. In contrast, Greater Melbourne experienced employment growth of 2.4% during this period. Jobs and Skills Australia's national employment forecasts from May-25 project an increase of 6.6% over five years and 13.7% over ten years nationally. Applying these projections to Diggers Rest's employment mix suggests local employment should increase by 6.3% over five years and 13.0% over ten years, based on simple weighting extrapolation for illustrative purposes.

Income analysis reveals strong economic positioning, with the area outperforming 60% of locations assessed nationally by AreaSearch

AreaSearch's latest postcode level ATO data for financial year 2023 shows Diggers Rest's median income among taxpayers is $59,008, with an average of $65,440. This is slightly lower than the national average, with Greater Melbourne having a median of $57,688 and an average of $75,164. Based on Wage Price Index growth of 8.25% since financial year 2023, current estimates for Diggers Rest would be approximately $63,876 (median) and $70,839 (average) as of September 2025. Census data indicates household, family and personal incomes in Diggers Rest are around the 69th percentile nationally. Income distribution shows that 42.9% of individuals earn between $1,500 - $2,999, which aligns with the broader area where this group represents 32.8%. High housing costs consume 16.3% of income, but strong earnings place disposable income at the 64th percentile nationally. Diggers Rest's SEIFA income ranking places it in the 6th decile.

Diggers Rest is characterized by a predominantly suburban housing profile, with ownership patterns similar to the broader region

Dwelling structure in Diggers Rest, as evaluated at the latest Census held on 28 August 2016, comprised 92.5% houses and 7.5% other dwellings (semi-detached, apartments, 'other' dwellings), compared to Melbourne metro's 67.9% houses and 32.1% other dwellings. Home ownership in Diggers Rest was at 21.0%, with the remainder of dwellings either mortgaged (57.9%) or rented (21.1%). The median monthly mortgage repayment in the area, as recorded in 2016, was $1,800, while the median weekly rent figure was $397. Nationally, Diggers Rest's mortgage repayments were lower than the Australian average of $1,863 reported in June 2021, while rents exceeded the national figure of $375 recorded in the same period.

Diggers Rest has a typical household mix, with a fairly typical median household size

Family households account for 76.7% of all households, including 35.9% couples with children, 28.1% couples without children, and 11.1% single parent families. Non-family households make up the remaining 23.3%, with lone person households at 21.1% and group households comprising 2.4% of the total. The median household size is 2.6 people, which matches the Greater Melbourne average.

The educational profile of Diggers Rest exceeds national averages, with above-average qualification levels and academic performance metrics

The area's university qualification rate is 25.3%, significantly lower than Greater Melbourne's average of 37.0%. Bachelor degrees are most common at 17.3%, followed by postgraduate qualifications (5.2%) and graduate diplomas (2.8%). Vocational credentials are held by 39.3% of residents aged 15+, with advanced diplomas at 12.8% and certificates at 26.5%. Educational participation is high, with 27.0% currently enrolled in formal education: 10.1% in primary, 5.6% in secondary, and 3.7% in tertiary education.

Educational participation is notably high, with 27.0% of residents currently enrolled in formal education. This includes 10.1% in primary education, 5.6% in secondary education, and 3.7% pursuing tertiary education.

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

Diggers Rest has 33 active public transport stops, all of which are bus stops. These stops are served by three different routes that together facilitate 1,427 weekly passenger trips. The area's transport accessibility is considered good, with residents typically residing just 388 meters from the nearest stop. As a predominantly residential region, most inhabitants commute outward. Cars remain the primary mode of transportation, used by 89% of residents, while only 9% opt for train travel. On average, each dwelling owns 1.6 vehicles, exceeding the regional norm.

According to the 2021 Census, a significant 25.6% of residents work from home, potentially due to COVID-19 conditions. The service frequency averages 203 trips per day across all routes, which translates to roughly 43 weekly trips per individual stop.

Health outcomes in Diggers Rest are marginally below the national average with the level of common health conditions among the general population somewhat typical, though higher than the nation's average among older cohorts

Diggers Rest shows below-average health indicators based on AreaSearch's assessment. Mortality rates and chronic condition prevalence are higher than the national average, particularly among older cohorts.

Private health cover is at approximately 53% of the total population (~4,076 people), slightly above the SA2 area average but lower than Greater Melbourne's 56.7%. The most common conditions are asthma (9.3%) and mental health issues (8.7%), while 71.6% report being clear of medical ailments, compared to 72.6% in Greater Melbourne. Health outcomes among working-age residents are typical. Diggers Rest has 10.9% of residents aged 65 and over (842 people), lower than Greater Melbourne's 15.1%. Health outcomes among seniors present some challenges but rank lower nationally than the broader population.

The level of cultural diversity witnessed in Diggers Rest was found to be above average when compared nationally for a number of language and cultural background related metrics

Diggers Rest, surveyed in June 2016, showed higher cultural diversity than most local areas, with 25.0% of residents born overseas and 25.2% speaking a language other than English at home. Christianity was the predominant religion, comprising 49.1% of Diggers Rest's population. Notably, the 'Other' religious category had a higher representation in Diggers Rest (5.1%) compared to Greater Melbourne (2.3%).

In terms of ancestry, Australian was the most prevalent, making up 23.6%, which is significantly higher than the regional average of 18.4%. English and Other ancestries followed, with 20.3% and 10.6% respectively. Some ethnic groups showed notable differences: Maltese (3.3% vs regional 1.1%), Croatian (1.6% vs 0.7%), and Hungarian (0.5% vs 0.3%) were overrepresented in Diggers Rest compared to the region.

Diggers Rest's young demographic places it in the bottom 15% of areas nationwide

Diggers Rest has a median age of 33, which is younger than Greater Melbourne's figure of 37 and Australia's national average of 38 years. Compared to Greater Melbourne, Diggers Rest has a higher proportion of residents aged 35-44 (19.3%) but fewer residents aged 15-24 (9.4%). This concentration of 35-44 year-olds is significantly higher than the national average of 14.3%. According to the 2021 Census, the proportion of Diggers Rest's population in the 35-44 age group has increased from 16.4% to 19.3%, while the 5-14 age cohort has risen from 11.8% to 13.3%. Conversely, the 25-34 age group has decreased from 23.4% to 19.2%. Population forecasts for Diggers Rest in 2041 suggest substantial demographic changes, with the strongest projected growth in the 35-44 age cohort at 102%, adding 1,515 residents to reach a total of 3,008.