Katoomba

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

Based on ABS population updates and AreaSearch's validation of new addresses, as of Nov 2025, the Katoomba statistical area (Lv2) has an estimated population of around 8,512. This reflects a growth of 244 people since the 2021 Census, which reported a population of 8,268. The increase is inferred from AreaSearch's estimate of 8,404 residents following examination of ABS' latest ERP data release (June 2024) and validation of an additional 54 new addresses since the Census date. This results in a density ratio of 384 persons per square kilometer. The Katoomba (SA2)'s population growth rate of 3.0% since the 2021 census exceeded its SA3 area's growth rate of 1.6%. Overseas migration was the primary driver for this population increase.

AreaSearch is adopting ABS/Geoscience Australia projections released in 2024 with a base year of 2022, and NSW State Government's SA2 level projections released in 2022 with a base year of 2021 for areas not covered by the former data. Considering these projections, the Katoomba statistical area (Lv2) is expected to increase its population by just below the median rate of statistical areas analysed by AreaSearch, reaching approximately 9,171 persons by 2041, reflecting a total growth of around 659 persons and 4.8% 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 around 32 residential properties granted approval annually. Over the past five financial years, from FY-21 to FY-25, approximately 164 homes were approved, with a further 9 approved so far in FY-26. The population has fallen during this period, suggesting new supply is keeping up with demand and offering good choice to buyers.

The average value of new homes being built is $530,000, indicating developers are targeting the premium market segment with higher-end properties. This year, $4.7 million in commercial approvals have been registered, reflecting the area's residential character. Compared to Greater Sydney, Katoomba has 97.0% higher development activity per person. Currently, new building activity comprises 66.0% standalone homes and 34.0% townhouses or apartments, marking a shift from existing housing patterns (currently 82.0% houses), likely due to diminishing developable land availability and evolving lifestyle preferences. Katoomba has around 262 people per approval, indicating a low density area.

By 2041, Katoomba is expected to grow by 408 residents. 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.

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

Changes to local infrastructure significantly influence an area's performance. AreaSearch has identified five projects that could impact this region. Notable ones include the Katoomba Cultural Centre and Civic Precinct Upgrade, Katoomba Town Centre Upgrade, Echo Point Precinct Upgrade, and Escarpments Estate. The following list details those 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.

Katoomba shows employment indicators that trail behind approximately 70% of regions assessed across Australia

Katoomba has a well-educated workforce with essential services sectors well represented. Its unemployment rate is 4.2%, as per AreaSearch's aggregation of statistical area data.

As of September 2025, 4,075 residents are employed, aligning with Greater Sydney's 4.2% unemployment rate. However, workforce participation lags at 53.1%. Key industries include health care & social assistance, education & training, and accommodation & food. Notably, accommodation & food employs 2.2 times the regional average, while finance & insurance is lower at 1.6%, compared to Greater Sydney's 7.3%.

Over the year to September 2025, labour force levels decreased by 4.0% in Katoomba, with employment down by 2.9%. This resulted in a 1.0 percentage point drop in unemployment. In contrast, Greater Sydney saw employment rise by 2.1%, labour force grow by 2.4%, and unemployment increase by 0.2%. At the state level, as of 25-Nov, NSW employment contracted by 0.03% (losing 2,260 jobs), with an unemployment rate of 3.9%. Nationally, the unemployment rate was 4.3%. Jobs and Skills Australia's national employment forecasts from May-25 project a 6.6% increase over five years and 13.7% over ten years. Applying these projections to Katoomba's employment mix suggests local employment could grow by 6.9% in five years and 14.2% in ten years, though this is a simplified extrapolation for illustrative purposes.

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

Katoomba suburb's income level is below national average. Latest ATO data aggregated by AreaSearch for financial year 2023 shows median income among taxpayers at $42,353 and average income at $58,097. Greater Sydney's figures are $60,817 and $83,003 respectively. Based on Wage Price Index growth of 8.86% since financial year 2023, current estimates for Katoomba would be approximately $46,105 (median) and $63,244 (average) as of September 2025. According to the 2021 Census, incomes in Katoomba fall between the 11th and 19th percentiles nationally. Income analysis reveals that 26.5% of residents (2,255 people) are in the $400 - 799 income bracket, unlike regional trends where 30.9% fall within the $1,500 - 2,999 range. Housing affordability pressures are severe with only 80.5% of income remaining, ranking at the 10th percentile. The area's SEIFA income ranking places it in the 4th decile.

Katoomba is characterized by a predominantly suburban housing profile, with a higher proportion of rental properties than the broader region

Dwelling structure in Katoomba, as evaluated at the latest Census held on 28 August 2016, comprised 82.5% houses and 17.4% other dwellings. In comparison, Sydney metro had 92.3% houses and 7.7% other dwellings. Home ownership in Katoomba was at 36.3%, with the remainder of dwellings either mortgaged (29.3%) or rented (34.4%). The median monthly mortgage repayment in the area was $1,600, while the median weekly rent figure was recorded at $350. Nationally, Katoomba's mortgage repayments were significantly lower than the Australian average of $1,863, as reported on 27 June 2021, while rents were less than the national figure of $375, also reported on the same date.

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

Family households account for 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 constitute the remaining 44.6%, with lone person households at 39.6% and group households comprising 5.1% of the total. The median household size is 2.1 people, which is smaller than the Greater Sydney average of 2.4.

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 and above, 34.8% have university qualifications, compared to the SA4 region's 23.9%. This educational advantage is evident in various credentials: Bachelor degrees (21.3%), postgraduate qualifications (9.9%), and graduate diplomas (3.6%). Vocational skills are also prominent, with 33.1% holding such credentials; advanced diplomas account for 11.8%, while certificates make up 21.3%.

Educational participation is high in Katoomba, with 25.3% of residents currently enrolled in formal education. This includes primary (7.9%), secondary (6.6%), and tertiary (4.6%) education.

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

Transport analysis in Katoomba shows 139 active public transport stops operating. These include a mix of train and bus services. There are 45 individual routes servicing these stops, collectively providing 4,011 weekly passenger trips.

Transport accessibility is rated as excellent, with residents typically located 170 meters from the nearest stop. Service frequency averages 573 trips per day across all routes, equating to approximately 28 weekly trips per individual stop.

Health performance in Katoomba is well below average with prevalence of common health conditions notable across both younger and older age cohorts

Katoomba faces significant health challenges, with common conditions prevalent among both younger and older residents. Approximately half of Katoomba's total population (~4,251 people) has private health cover, lower than Greater Sydney's 55.6% and the national average of 55.7%. Mental health issues affect 12.6% of residents, while arthritis impacts 9.2%.

Conversely, 61.8% report no medical ailments, slightly less than Greater Sydney's 64.1%. Katoomba has a higher proportion of seniors aged 65 and over at 25.9% (2,204 people), compared to Greater Sydney's 24.3%. Despite this, health outcomes among seniors in Katoomba are above average, outperforming the general population in health metrics.

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's cultural diversity was above average, with 10.2% speaking a language other than English at home and 23.4% born overseas. Christianity was the predominant religion, accounting for 33.3%. Judaism, however, was overrepresented at 0.4%, compared to Greater Sydney's 0.2%.

The top three ancestry groups were English (28.6%), Australian (21.2%), and Irish (12.0%). Notably, Hungarian (0.5% vs regional 0.5%), French (0.9% vs 0.6%), and Polish (1.1% vs 0.9%) were also overrepresented.

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 average of 38 years. The age profile shows that individuals aged 65-74 are particularly prominent, making up 15.6% of the population, compared to 9.4% nationally. Meanwhile, the 25-34 age group comprises 9.4%, which is smaller than in Greater Sydney. Between 2021 and present, the 75-84 age group has grown from 6.3% to 8.4%, while the 15-24 cohort has increased from 9.3% to 10.9%. Conversely, the 25-34 cohort has decreased from 10.4% to 9.4%. By 2041, population forecasts indicate significant demographic changes in Katoomba. The 75-84 age group is projected to grow by 53%, adding 375 residents to reach 1,091. Residents aged 65 and above will drive 89% of the population growth, emphasizing the trend towards an aging demographic. Conversely, population declines are projected for the 25-34 and 0-4 age cohorts.