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 estimated population of Diggers Rest as of February 2026 is around 7,733, reflecting an increase of 2,064 people since the 2021 Census. The 2021 Census reported a population of 5,669 in the suburb. This growth of 36.4% exceeds the national average (9.9%) and is primarily driven by interstate migration contributing approximately 73.0% of overall population gains. Other factors such as natural growth and overseas migration also contribute positively to population growth. The latest resident population estimate for Diggers Rest, following examination of ABS ERP data release in June 2024, is 7,402 with an additional 695 validated new addresses since the Census date. This results in a density ratio of 114 persons per square kilometer.

AreaSearch projects future growth placing Diggers Rest in the top 10 percent of national statistical areas, predicting an expansion of 8,731 persons to reach a population of 16,464 by 2041 based on aggregated SA2-level projections, reflecting a gain of 109.3% over the 17 years.

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. In total, 1,186 homes were approved during this period, with an additional 61 approved in FY-26. Each year, around 2.8 people moved to the area per new home constructed.

The average construction cost value of new homes was $320,000. In FY-26, commercial approvals totaled $235,000. Compared to Greater Melbourne, Diggers Rest had 144.0% more new home approvals per person as of the latest data. Building activity has slowed recently but remains well above national averages, indicating strong developer confidence in the area. The majority of new constructions were detached dwellings (96.0%), with townhouses or apartments comprising the remaining 4.0%, maintaining Diggers Rest's low-density character.

There were approximately 33 people per dwelling approval in the area. Population forecasts suggest Diggers Rest will gain 8,454 residents by 2041, and building activity is keeping pace with these projections. However, increased competition among buyers is expected as the population grows.

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 identified 45 projects likely to impact the area. Key projects include Diggers Rest Town Centre, proposed as a mixed-use precinct, Grandview Estate, Nightjar Estate, and Mary St, Diggers Rest. The following list details those most relevant.

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

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Employment performance in Diggers Rest exceeds national averages across key labour market indicators

Diggers Rest has a skilled workforce with diverse sector representation. Its unemployment rate was 3.2% as of September 2025. Employment growth over the past year was estimated at 1.9%.

This is lower than Greater Melbourne's employment growth of 3.0%, but higher than its labour force growth of 2.6%. Diggers Rest' unemployment rate rose by 0.7 percentage points, compared to Greater Melbourne's rise of 0.3 percentage points. As of September 2025, 4,557 residents were in work. The unemployment rate was 1.4% below Greater Melbourne's rate of 4.7%.

Workforce participation was higher at 81.5%, compared to Greater Melbourne's 71.0%. However, 25.6% of residents worked from home, which may be influenced by Covid-19 lockdown impacts. Leading employment industries in Diggers Rest are 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 were under-represented at 6.0%, compared to Greater Melbourne's 10.1%. Employment levels increased by 1.9% and labour force increased by 2.6% during the year to September 2025. Jobs and Skills Australia forecasts national employment growth of 6.6% over five years and 13.7% over ten years. Applying these projections to Diggers Rest' employment mix suggests local employment should increase by 6.3% over five years and 13.0% over ten years, assuming no changes in population projections.

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 had a median income among taxpayers of $59,008 and an average of $65,440. This is lower than the national average. Greater Melbourne's median was $57,688 with an average of $75,164. By September 2025, estimates suggest Diggers Rest's median income will be approximately $63,876 and average $70,839, based on Wage Price Index growth of 8.25%. Census data indicates incomes in Diggers Rest cluster around the 69th percentile nationally. The $1,500 - 2,999 earnings band captures 42.9% of residents (3,317 individuals), similar to the broader area at 32.8%. High housing costs consume 16.3% of income, but strong earnings place disposable income at the 64th percentile. 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

In Diggers Rest, as per the latest Census, 92.5% of dwellings were houses with the remaining 7.5% being semi-detached, apartments, or other types. This contrasts with Melbourne metro's 67.9% houses and 32.1% other dwellings. Home ownership in Diggers Rest stood at 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. The median weekly rent in Diggers Rest was $397, compared to Melbourne metro's $390. Nationally, Diggers Rest's mortgage repayments were below the Australian average of $1,863, while rents exceeded the national figure of $375.

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

Family households constitute 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 comprise the remaining 23.3%, with lone person households at 21.1% and group households making up 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, including 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 serving a mix of bus routes. These stops are covered by three different routes that collectively facilitate 1,427 weekly passenger trips. The area's transport accessibility is rated as good with residents typically located about 388 meters from the nearest stop. Most residents in this mainly residential area commute outward daily. Cars remain the primary mode of transportation at 89%, while only 9% use trains for their travels. On average, there are 1.6 vehicles per dwelling, which is higher than the regional average.

Notably, 25.6% of residents work from home, according to the 2021 Census data that might be influenced by COVID-19 conditions. The service frequency averages around 203 trips per day across all routes, translating 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 indicators based on AreaSearch's assessment. Mortality rates and chronic condition prevalence are higher than the national average among older cohorts, while private health cover is at 53%, slightly above the SA2 area average but lower than Greater Melbourne's 56.7%.

Common medical conditions include asthma (9.3%) and mental health issues (8.7%), with 71.6% of residents reporting no medical ailments compared to 72.6% in Greater Melbourne. Health outcomes among working-age residents are typical. The area has 10.9% of residents aged 65 and over, lower than Greater Melbourne's 15.1%. 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 June 2021, exhibited significant cultural diversity with 25.0% of its residents born overseas and 25.2% speaking a language other than English at home. Christianity was the predominant religion, accounting for 49.1% of Diggers Rest's population as of June 2021. However, the 'Other' religious category showed an overrepresentation in Diggers Rest with 5.1%, compared to Greater Melbourne's 2.3%.

In terms of ancestry, Australians comprised 23.6%, substantially higher than the regional average of 18.4%. English ancestry followed at 20.3% and 'Other' at 10.6%. Notable ethnic group divergences included Maltese at 3.3%, Croatian at 1.6%, and Hungarian at 0.5%, all higher than their respective regional averages.

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 (19.2%) but fewer residents aged 15-24 (9.5%). Between the 2021 Census and the present day, the 35-44 age group has increased from 16.4% to 19.2%, while the 5-14 age group has risen from 11.8% to 13.3%. Conversely, the 25-34 age group has decreased from 23.4% to 19.1%. Population projections for the year 2041 suggest significant demographic changes in Diggers Rest, with the strongest growth expected in the 35-44 age cohort, which is projected to grow by 103%, adding 1,526 residents and reaching a total of 3,011.