Katoomba

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

As of Feb 2026, the estimated population of the suburb of Katoomba is around 8,549. This figure reflects an increase of 281 people since the 2021 Census, which reported a population of 8,268. The change is inferred from AreaSearch's estimate of the resident population at 8,404 in Jun 2024, along with 72 validated new addresses added since the Census date. This results in a density ratio of 386 persons per square kilometer. Katoomba's growth rate of 3.4% since the 2021 census exceeded the SA3 area's growth rate of 1.7%. Overseas migration was primarily responsible for this population increase.

AreaSearch uses ABS/Geoscience Australia projections for each SA2 area, released in 2024 with a base year of 2022, and NSW State Government's SA2-level projections for areas not covered by this data, released in 2022 with a base year of 2021. Growth rates by age group are applied to all areas from these aggregations for the years 2032 to 2041. By 2041, the suburb is expected to increase by 676 persons, reflecting an overall increase of 6.2% over the 17-year period.

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

AreaSearch analysis of ABS building approval numbers in Katoomba shows approximately 33 new homes approved annually over the past five financial years, totalling an estimated 169 homes. As of FY2025-26, 10 approvals have been recorded. The population has fallen during this period, indicating that new supply may be keeping up with demand and offering good choice to buyers. New properties are constructed at an average value of $530,000, suggesting developers target the premium market segment with higher-end properties.

This financial year has seen $4.7 million in commercial approvals, demonstrating Katoomba's primarily residential nature. Compared to Greater Sydney, Katoomba records 103.0% more construction activity per person. There are approximately 66.0% standalone homes and 34.0% attached dwellings among new building activity, indicating an increasing blend of housing types offering choices across price ranges. This reflects a change from the current housing mix (currently 82.0% houses), possibly due to reduced availability of development sites and shifting lifestyle demands. With around 243 people per dwelling approval, Katoomba shows characteristics of a low density area.

Future projections estimate Katoomba will add approximately 531 residents by 2041 (from the latest AreaSearch quarterly estimate). At current development rates, new housing supply should comfortably meet demand, potentially supporting growth beyond current population projections.

Katoomba has moderate levels of nearby infrastructure activity, ranking in the top 50% nationally

Five projects identified by AreaSearch are expected to influence the performance of a certain area: Katoomba Cultural Centre and Civic Precinct Upgrade, Katoomba Town Centre Upgrade, Echo Point Precinct Upgrade, Escarpments Estate. These are the key initiatives that could have significant impacts on the region.

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

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AreaSearch analysis reveals Katoomba recording weaker employment conditions than most comparable areas nationwide

Katoomba's workforce is well-educated with essential services sectors well represented. The unemployment rate was 4.8% as of December 2025, according to AreaSearch aggregation of statistical area data. In that month, 3,989 residents were employed while the unemployment rate was 0.7% higher than Greater Sydney's rate of 4.2%.

Workforce participation lagged significantly at 56.8%, compared to Greater Sydney's 70.2%. Census responses showed that 39.0% of residents worked from home, though Covid-19 lockdown impacts should be considered. The dominant employment sectors among residents were health care & social assistance, education & training, and accommodation & food. Katoomba had a particularly notable concentration in accommodation & food, with employment levels at 2.2 times the regional average.

Finance & insurance was under-represented, with only 1.6% of Katoomba's workforce compared to 7.3% in Greater Sydney. The area appeared to offer limited local employment opportunities, as indicated by the count of Census working population versus resident population. Over the 12 months to December 2025, labour force levels decreased by 4.7%, alongside a 4.4% employment decline, resulting in the unemployment rate falling by 0.3 percentage points. This contrasted with Greater Sydney, where employment rose by 2.2%, the labour force grew by 2.3%, and unemployment rose marginally. Jobs and Skills Australia's national employment forecasts from May-25 offered further insight into potential future demand within Katoomba. These projections, covering five and ten-year periods, were mapped against the local employment profile to estimate growth patterns. National employment was forecast to expand by 6.6% over five years and 13.7% over ten years. However, growth rates differed significantly between industry sectors. Applying these industry-specific projections to Katoomba's employment mix suggested that local employment should increase by 6.9% over five years and 14.2% over ten years.

Income metrics place the area in the bottom 10% of locations nationally according to AreaSearch analysis

The suburb of Katoomba had a median taxpayer income of $42,353 and an average income of $58,097 in the financial year 2023, according to postcode level ATO data aggregated by AreaSearch. This is below the national average, with Greater Sydney's median income being $60,817 and average income $83,003. As of September 2025, current estimates suggest a median income of approximately $46,105 and an average income of $63,244, based on Wage Price Index growth of 8.86% since financial year 2023. In Katoomba, household, family, and personal incomes all fall between the 11th and 19th percentiles nationally, according to Census 2021 income data. The largest earnings segment comprises 26.5% of residents earning $400 - $799 weekly, unlike regional trends where 30.9% fall within the $1,500 - $2,999 range. Housing affordability pressures are severe in Katoomba, with only 80.5% of income remaining after housing costs, ranking at the 10th percentile nationally. The area's SEIFA income ranking places it in the 4th decile.

Katoomba is characterized by a predominantly suburban housing profile, with above-average rates of outright home ownership

Katoomba's dwellings, as recorded in the latest Census, consisted of 82.5% houses and 17.4% other dwellings. In comparison, Sydney metro had 55.9% houses and 44.1% other dwellings. Home ownership in Katoomba was at 36.3%, with mortgaged dwellings at 29.3% and rented ones at 34.4%. The median monthly mortgage repayment in the area was $1,600, below Sydney metro's average of $2,427. Median weekly rent in Katoomba was $350, compared to Sydney metro's $470. Nationally, Katoomba's mortgage repayments were lower than the Australian average of $1,863, and rents were less than the national figure of $375.

Katoomba features high concentrations of lone person households and group households, with a lower-than-average median household size

Family households constitute 55.4% of all households, including 17.7% couples with children, 24.9% couples without children, and 12.0% single parent families. Non-family households account for the remaining 44.6%, with lone person households at 39.6% and group households comprising 5.1%. The median household size is 2.1 people, smaller than Greater Sydney's average of 2.7.

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

Katoomba's educational attainment exceeds broader benchmarks. Among residents aged 15+, 34.8% have university qualifications, compared to the SA4 region's 23.9%. This includes 21.3% with bachelor degrees, 9.9% with postgraduate qualifications, and 3.6% with graduate diplomas. Vocational credentials are also prominent, with 33.1% of residents aged 15+ holding them, including 11.8% with advanced diplomas and 21.3% with certificates.

Educational participation is high, with 25.3% currently enrolled in formal education: 7.9% in primary, 6.6% in secondary, and 4.6% in tertiary education.

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

Katoomba has 139 active public transport stops, offering a mix of train and bus services. These are covered by 45 routes, providing 4,011 weekly passenger trips in total. Transport accessibility is rated excellent, with residents typically living 170 meters from the nearest stop. Most commuting is outward-bound due to its residential nature. Cars are the dominant mode of transport at 80%, with 12% walking. Vehicle ownership averages 0.9 per dwelling, below the regional average.

In 2021 Census data, which may reflect COVID-19 conditions, 39% of residents worked from home. Service frequency averages 573 trips daily across all routes, equating to about 28 weekly trips per stop. The map accompanying the analysis shows the 100 nearest stops to the location's centrepoint.

Health outcomes in Katoomba are marginally below the national average with common health conditions slightly more prevalent than average across both younger and older age cohorts

Katoomba's health indicators show below-average outcomes based on AreaSearch's assessment of mortality rates and chronic condition prevalence. Common health conditions are slightly more prevalent than average across both younger and older age cohorts. Private health cover is relatively low at approximately 50% of the total population (around 4,270 people), compared to 59.9% in Greater Sydney and a national average of 55.7%.

The most common medical conditions are mental health issues affecting 12.6% of residents and arthritis impacting 9.2%, while 61.8% report being completely clear of medical ailments, compared to 74.6% across Greater Sydney. Working-age population faces notable health challenges with elevated chronic condition rates. The area has 26.6% of residents aged 65 and over (2,274 people), higher than Greater Sydney's 15.4%. Health outcomes among seniors are above average, ranking even higher than the general population nationally.

In terms of cultural diversity, Katoomba records figures broadly comparable to the national average, as found in AreaSearch's assessment of a number of language and cultural background related metrics

Katoomba, as per the latest data from June 2021, has a cultural diversity index above average. Of its population, 10.2% speak a language other than English at home, while 23.4% were born overseas. Christianity is the predominant religion in Katoomba, with 33.3% of people identifying as such, though this is slightly lower than the Greater Sydney average of 35.6%.

Notably, Judaism is overrepresented in Katoomba, comprising 0.4% of its population compared to 0.8% regionally. In terms of ancestry, English is the most represented group at 28.6%, substantially higher than the regional average of 19.0%. Australian and Irish ancestry follow at 21.2% and 12.0% respectively, both higher than their respective regional averages of 15.4% and 6.1%. Some other ethnic groups also show notable divergences: Hungarian is overrepresented at 0.5%, French at 0.9%, and Polish at 1.1%, compared to their regional averages of 0.3%, 0.5%, and 0.6% respectively.

Katoomba hosts an older demographic, ranking in the top quartile nationwide

Katoomba's median age is 48 years, which is significantly higher than Greater Sydney's average of 37 years and Australia's national average of 38 years. The age profile shows that those aged 65-74 are particularly prominent, making up 15.7% of the population, compared to the national average of 9.5%. This is notably higher than the 9.1% seen in Greater Sydney's 25-34 age group. Between 2021 and present, the 75-84 age group has grown from 6.3% to 9.0%, while the 15-24 cohort increased from 9.3% to 11.0%. Conversely, the 25-34 age group has declined from 10.4% to 9.1%. By 2041, population forecasts indicate substantial demographic changes for Katoomba. The 75-84 cohort is projected to grow by 46%, adding 351 residents and reaching a total of 1,121. Residents aged 65 and above will drive 84% of this population growth, underscoring the trend towards demographic aging in Katoomba. Meanwhile, population declines are projected for the 0-4 and 15-24 age cohorts.