Kensington (Vic.)

Kensington has seen population growth performance typically on par with national averages when looking at short and medium term trends

The population of Kensington (Vic.) is estimated at 12,423 as of May 2026. This reflects an increase since the 2021 Census which reported a population of 10,745 people. The growth of 1,678 people represents a 15.6% increase. AreaSearch estimated this population following examination of the latest ERP data release by the ABS in June 2025 and validation of an additional 70 new addresses since the Census date. This results in a density ratio of 5,805 persons per square kilometer, placing Kensington (Vic.) in the top 10% of national locations assessed by AreaSearch. The suburb's population growth exceeded both state (9.3%) and national averages since the 2021 Census.

Overseas migration contributed approximately 73.0% of overall population gains during recent periods. AreaSearch adopts ABS/Geoscience Australia projections released in 2024 with a base year of 2022 for each SA2 area. For areas not covered by this data, AreaSearch utilises the VIC State Government's Regional/LGA projections released in 2023, adjusting using a method of weighted aggregation of population growth from LGA to SA2 levels. Growth rates by age group are applied across all areas for years 2032 to 2041. Based on aggregated SA2-level projections, the suburb is expected to expand by 2,420 persons to 2041, reflecting a gain of 19.5% in total over the 16-year period.

AreaSearch assessment of residential development activity positions Kensington among the top 25% of areas assessed nationwide

Based on AreaSearch analysis of ABS building approval numbers allocated from statistical area data, Kensington has seen approximately 234 new homes approved each year. Over the past five financial years, from FY-21 to FY-25, around 1,170 homes were approved, with an additional 447 approved so far in FY-26. On average, about 0.1 new residents per year have arrived for each new home constructed over these five years.

This indicates that new construction is either matching or outpacing demand, providing more options for buyers and potentially supporting population growth beyond current expectations. The average value of new dwellings being developed is approximately $300,000, which aligns with regional patterns. In the current financial year, there have been $77.0 million in commercial approvals, reflecting high levels of local commercial activity. Compared to Greater Melbourne, Kensington exhibits 57.0% higher construction activity per person, offering buyers ample choice, although recent construction activity has eased slightly. This level of activity is above the national average and suggests strong developer confidence in the area. Notably, recent building activity consists solely of attached dwellings, indicating a focus on higher-density living. This shift creates more affordable entry points for downsizers, investors, and first-home buyers, representing a significant change from the area's existing housing stock, which is currently 17.0% houses.

This trend may reflect decreasing availability of developable sites and evolving lifestyles that require diverse, affordable housing options. With approximately 63 people per approval, Kensington reflects an actively developing area. According to AreaSearch's latest quarterly estimate, the area is projected to add around 2,420 residents by 2041. If current development rates continue, new housing supply should comfortably meet demand, creating favorable conditions for buyers and potentially supporting population growth beyond current projections.

Kensington has very high levels of nearby infrastructure activity, ranking in the top 10% nationally

Changes to local infrastructure significantly impact an area's performance. AreaSearch identified 41 projects likely affecting the region. Notable initiatives include Younghusband Kensington, Assemble's 402-444 Macaulay Road Build-to-Rent project, West Melbourne Waterfront development, and the mixed-use 21-37 Barrett Street project. 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 conditions in Kensington remain below the national average according to AreaSearch analysis

Kensington has a highly educated workforce with strong representation in professional services. Its unemployment rate was 7.1% as of an unspecified past year, with estimated employment growth at 3.6%. As of December 2025, 7,669 residents were employed while the unemployment rate stood at 2.4%, surpassing Greater Melbourne's rate of 4.8%.

Workforce participation was high at 75.8%, compared to Greater Melbourne's 69.9%. According to Census responses, 52.7% of residents worked from home, potentially influenced by Covid-19 lockdowns. Employment is concentrated in professional & technical (1.7 times the regional level), health care & social assistance, and education & training sectors. However, only 4.3% of local workers are employed in construction, lower than Greater Melbourne's 9.7%.

While local employment opportunities exist, many residents commute elsewhere for work. Between May-25 and June-26, employment increased by 3.6%, labour force grew by 4.6%, leading to a rise in unemployment rate of 0.9 percentage points. In contrast, Greater Melbourne saw employment grow by 2.4%, labour force by 2.8%, and unemployment rose by 0.3 percentage points. National employment forecasts from Jobs and Skills Australia project growth of 6.6% over five years and 13.7% over ten years. Applying these projections to Kensington's employment mix suggests local employment should increase by 7.3% over five years and 14.7% over ten years, though these are simple extrapolations for illustrative purposes only.

Income metrics indicate excellent economic conditions, with the area achieving higher performance than 75% of national locations assessed by AreaSearch

AreaSearch's latest postcode level ATO data for financial year ending June 2023 indicates that Kensington suburb has extremely high incomes nationally. The median assessed income is $64,507 while the average income stands at $81,585. This contrasts with Greater Melbourne's figures of a median income of $57,688 and an average income of $75,164. Based on Wage Price Index growth of 9.62% from financial year ending June 2023 to March 2026, current estimates would be approximately $70,713 (median) and $89,433 (average). According to the Census conducted in August 2021, household, family and personal incomes all rank highly in Kensington, between the 79th and 93rd percentiles nationally. The earnings profile shows that 31.5% of locals (3,913 people) fall within the $1,500 - 2,999 weekly income category, similar to the metropolitan region where 32.8% occupy this range. Notably, 36.0% earn above $3,000 weekly. High housing costs consume 16.5% of income, but strong earnings place disposable income at the 77th percentile nationally. The area's SEIFA income ranking places it in the 9th decile.

Kensington displays a diverse mix of dwelling types, with a higher proportion of rental properties than the broader region

Kensington's dwelling structures, as per the latest Census, consisted of 17.2% houses and 82.8% other dwellings (semi-detached, apartments, 'other' dwellings). This contrasts with Melbourne metro's figures of 67.9% houses and 32.1% other dwellings. Home ownership in Kensington stood at 18.6%, with mortgaged dwellings at 31.2% and rented ones at 50.2%. The median monthly mortgage repayment was $2,162, exceeding Melbourne metro's average of $2,000. Median weekly rent in Kensington was $416, higher than Melbourne metro's $390. Nationally, Kensington's mortgage repayments were significantly higher at $2,162 compared to the Australian average of $1,863, and rents were substantially above the national figure of $375.

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

Family households comprise 56.3% of all households, including 20.1% couples with children, 27.1% couples without children, and 7.5% single parent families. Non-family households account for the remaining 43.7%, with lone person households at 34.9% and group households comprising 8.8%. The median household size is 2.1 people, which is smaller than the Greater Melbourne average of 2.6.

Kensington shows strong educational performance, ranking in the upper quartile nationally when assessed across multiple qualification and achievement indicators

Kensington's educational attainment is notably higher than national averages. Among residents aged 15 and above, 59.1% possess university qualifications, compared to Australia's 30.4% and Victoria's 33.4%. Bachelor degrees are the most common at 35.5%, followed by postgraduate qualifications (18.3%) and graduate diplomas (5.3%). Vocational pathways account for 17.3%, with advanced diplomas at 8.5% and certificates at 8.8%.

Educational participation is high, with 28.0% of residents currently enrolled in formal education. This includes 10.3% in tertiary, 6.9% in primary, and 4.8% in secondary education.

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

Kensington has 22 operational public transport stops offering a mix of lightrail and bus services. These stops are served by four distinct routes, collectively facilitating 4,527 weekly passenger trips. Transport accessibility is rated excellent, with residents typically residing 197 meters from the nearest stop. Predominantly residential, most Kensington residents commute outward using various modes: car (54%), train (20%), and cycling (9%). Vehicle ownership averages 0.6 per dwelling, lower than the regional average. According to the 2021 Census, 52.7% of residents work from home, potentially due to COVID-19 conditions.

Service frequency across all routes averages 646 trips daily, equating to approximately 205 weekly trips per individual stop.

Kensington's residents are healthier than average in comparison to broader Australia with prevalence of common health conditions quite low among the general population though higher than the nation's average across older, at risk cohorts

Kensington residents have shown relatively positive health outcomes according to AreaSearch's analysis. Mortality rates and health conditions are largely in line with national benchmarks.

The prevalence of common health conditions is quite low among the general population but higher than the average across older, at-risk cohorts. Approximately 59% (7,330 people) have private health cover, compared to 56.7% across Greater Melbourne. Mental health issues and asthma are the most common medical conditions in Kensington, affecting 10.6 and 8.9% of residents respectively. About 71.7% of residents declare themselves completely clear of medical ailments, compared to 72.6% across Greater Melbourne. The under-65 population has better than average health outcomes. Kensington has 10.8% (1,341 people) of residents aged 65 and over, which is lower than the 15.0% in Greater Melbourne. While health outcomes among seniors present some challenges, they rank lower nationally than those of the broader population.

Kensington was found to be more culturally diverse than the vast majority of local markets in Australia, upon assessment of a range of language and cultural background related metrics

Kensington's population showed high cultural diversity, with 32.2% born overseas and 25.7% speaking a language other than English at home. Christianity was the predominant religion, accounting for 29.0%. While Judaism comprised only 0.3%, it was higher than Greater Melbourne's 1.0%.

The top three ancestral groups were English (21.6%), Australian (18.4%), and Other (11.7%). Notable differences existed in Irish (10.9% vs regional 6.5%), Vietnamese (2.3% vs 1.9%), and Sri Lankan (0.5% vs 0.8%) representation.

Kensington's population is younger than the national pattern

Kensington's median age is 34 years, which is lower than Greater Melbourne's average of 37 and Australia's national average of 38 years. Compared to Greater Melbourne, Kensington has a higher proportion of residents aged 25-34 (25.7%) but fewer residents aged 5-14 (7.7%). This concentration of 25-34 year-olds is significantly higher than the national average of 14.6%. Between the 2021 Census and the present, the proportion of residents aged 25 to 34 has increased from 23.7% to 25.7%, while those aged 15 to 24 have risen from 10.4% to 11.5%. Conversely, the proportion of residents aged 45 to 54 has decreased from 12.4% to 11.2%, and the 0-4 age group has fallen from 5.9% to 4.8%. By 2041, population forecasts indicate substantial demographic changes in Kensington. The 45-54 age cohort is projected to grow by 54%, adding 755 residents to reach a total of 2,147. In contrast, the number of residents aged 15-24 is expected to decrease by 10%.