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

As per AreaSearch's analysis using ABS population updates and validated new addresses, the estimated population of Diggers Rest as of May 2026 is approximately 7,972. This represents a 40.6% increase since the 2021 Census, which reported a population of 5,669. The current resident population estimate of 7,876 by AreaSearch is based on examination of the latest ERP data release by the ABS in June 2025 and an additional 694 validated new addresses since the Census date. This results in a population density ratio of 117 persons per square kilometer. The suburb's significant population growth, at 40.6%, exceeded both the state average (9.3%) and national average during this period. Interstate migration contributed approximately 73.0% to Diggers Rest's overall population gains recently, with other factors such as natural growth and overseas migration also being positive contributors.

AreaSearch is using 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 to SA2 levels for areas not covered by the first data set. Applying these aggregated growth rates across all areas for years 2032 to 2041, Diggers Rest is projected to experience exceptional growth, placing it in the top 10% of national statistical areas. By 2041, the suburb's population is expected to expand by approximately 7,676 persons, reflecting a total gain of 95.1% over the 16-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 per year. Between Financial Year 21 (FY-21) and FY-25, around 1,187 homes were approved, with an additional 87 approved in FY-26 as of the current date. Each new home constructed attracted an average of 2.7 people to the area over these five years.

The average construction cost value for new homes was $320,000. This financial year has seen $235,000 in commercial approvals, indicating Diggers Rest's residential focus. Compared to Greater Melbourne, Diggers Rest had 122.0% more new home approvals per person as of the latest measurement. However, building activity has slowed in recent years. Nationally, Diggers Rest's activity is well above average, reflecting strong developer confidence.

The area primarily consists of detached dwellings (96.0%) with a smaller proportion of townhouses or apartments (4.0%), maintaining its traditional low-density character. With around 33 people per dwelling approval, Diggers Rest exhibits characteristics of a growth area. According to the latest AreaSearch quarterly estimate, Diggers Rest is projected to gain approximately 7,580 residents by 2041. Building activity appears to be keeping pace with these population growth projections. However, increased competition among buyers can be expected as the population continues to grow.

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

Changes to local infrastructure significantly influence an area's performance. AreaSearch has identified 43 projects likely impacting the area. Notable projects include Diggers Rest Town Centre, Grandview Estate, Nightjar Estate, and Mary St, Diggers Rest. The following details those 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 and an unemployment rate of 2.8%, as per AreaSearch's aggregation of statistical area data. As of December 2025, there are 4,489 residents employed, with an unemployment rate 1.9% lower than Greater Melbourne's rate of 4.8%. Workforce participation is at 74.9%, slightly higher than Greater Melbourne's 69.9%.

Census responses indicate that 25.6% of residents work from home, though Covid-19 lockdown impacts should be considered. The leading employment industries are construction, health care & social assistance, and transport, postal & warehousing. Diggers Rest shows strong specialization in transport, postal & warehousing, with an employment share 2.1 times the regional level. However, professional & technical services are under-represented, at 6.0% compared to Greater Melbourne's 10.1%.

The area appears to offer limited local employment opportunities, as indicated by the ratio of Census working population to resident population. Between December 2024 and December 2025, Diggers Rest's labour force decreased by 0.7%, while employment declined by 0.6%, leaving unemployment broadly flat. In contrast, Greater Melbourne experienced employment growth of 2.4% and labour force growth of 2.8%. Jobs and Skills Australia's national employment forecasts from May-25 suggest that Diggers Rest's employment should increase by 6.3% over five years and 13.0% over ten years, based on industry-specific projections applied to the local employment mix.

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 indicates Diggers Rest's median income among taxpayers is $59,008, with an average of $65,440. This is slightly lower than the national average, and compares to Greater Melbourne's median of $57,688 and average of $75,164. Based on Wage Price Index growth of 9.62% since financial year 2023, estimated incomes as of March 2026 are approximately $64,685 (median) and $71,735 (average). Census data shows household, family and personal incomes in Diggers Rest cluster around the 69th percentile nationally. Income distribution reveals that 42.9% of individuals earn between $1,500 - 2,999 annually, aligning with the broader area where this cohort represents 32.8%. High housing costs consume 16.3% of income, but strong earnings place disposable income at the 64th percentile nationally. The area'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

Diggers Rest's dwellings were 92.5% houses and 7.5% other types (semi-detached, apartments, others) in the latest Census, compared to Melbourne metro's 67.9% houses and 32.1% other dwellings. Home ownership in Diggers Rest was 21.0%, with mortgaged dwellings at 57.9% and rented ones at 21.1%. The median monthly mortgage repayment was $1,800, lower than Melbourne metro's $2,000 but close to the national average of $1,863. Median weekly rent in Diggers Rest was $397, higher than Melbourne metro's $390 and the national figure of $375.

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 constitute the remaining 23.3%, with lone person households at 21.1% and group households comprising 2.4%. The median household size is 2.6 people, which aligns with 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 the most common at 17.3%, followed by postgraduate qualifications (5.2%) and graduate diplomas (2.8%). Vocational credentials are prevalent, with 39.3% of residents aged 15+ holding them, including advanced diplomas (12.8%) and certificates (26.5%). Educational participation is high, with 27.0% of residents currently enrolled in formal education.

This includes primary education (10.1%), secondary education (5.6%), and tertiary education (3.7%).

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

Diggers Rest has 33 operational 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 deemed good, with residents typically residing 388 meters from the nearest stop. Most residents commute outward due to Diggers Rest being predominantly residential. Cars remain the primary mode of transportation at 89%, while train usage stands at 9%. On average, there are 1.6 vehicles per dwelling, exceeding the regional norm.

Notably, 25.6% of residents work from home (as per the 2021 Census; this figure may be influenced by COVID-19 conditions). Across all routes, an average of 203 trips is made daily, equating to approximately 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 outcomes based on AreaSearch's assessment. Mortality rates and chronic condition prevalence are higher than average for older cohorts but typical for the general population.

Private health cover is at 53%, slightly above the SA2 average but below Greater Melbourne's 56.7%. The most common conditions are asthma (9.3%) and mental health issues (8.7%). 71.6% of residents report no medical ailments, compared to 72.6% in Greater Melbourne. Working-age population health outcomes are typical. Diggers Rest has 10.4% of residents aged 65 and over (829 people), lower than Greater Melbourne's 15.0%. Senior health outcomes present 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 2016, had a higher proportion of overseas-born residents than most local areas, with 25.0%. Similarly, 25.2% spoke languages other than English at home. Christianity was the dominant religion, comprising 49.1%, but 'Other' religions were overrepresented compared to Greater Melbourne (5.1% vs 2.3%).

Regarding ancestry, Australian-born parents made up 23.6%, higher than the regional average of 18.4%. English-born parents accounted for 20.3%, and 'Other' was at 10.6%. Notably, Maltese ancestry was overrepresented at 3.3% (regional: 1.1%), Croatian at 1.6% (regional: 0.7%), and Hungarian at 0.5% (regional: 0.3%).

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 (19.4%), but fewer residents aged 15-24 (9.8%). This concentration of 35-44 year-olds is notably higher than the national figure of 14.3%. Between the 2021 Census and present, the proportion of Diggers Rest's population in the 35 to 44 age group has increased from 16.4% to 19.4%, while the 5 to 14 cohort has risen from 11.8% to 13.1%. Conversely, the 25 to 34 age group has decreased from 23.4% to 19.6%. By 2041, population forecasts indicate significant demographic shifts in Diggers Rest. The 35 to 44 age cohort is projected to grow by 90%, adding 1,391 residents and reaching a total of 2,938.