Kensington (Vic.)

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

Based on ABS population updates and AreaSearch validation, the suburb of Kensington (Vic.) had an estimated population of 11,709 as of Feb 2026. This reflected a growth of 964 people from the 2021 Census figure of 10,745. The increase was inferred from AreaSearch's estimate of 11,699 residents following examination of ABS's June 2024 ERP data release and validation of 70 new addresses since the Census date. Kensington's population density was 5,471 persons per square kilometer, placing it in the top 10% nationally according to AreaSearch. The suburb's 9.0% growth since census was close to the national average of 9.9%, indicating strong growth fundamentals. Overseas migration contributed approximately 73.0% of Kensington's population gains during recent periods.

AreaSearch uses ABS/Geoscience Australia projections for each SA2 area, released in 2024 with a base year of 2022. For areas not covered by this data, AreaSearch employs VIC State Government's Regional/LGA projections from 2023, adjusted using weighted aggregation methods to SA2 levels. Growth rates by age group are applied across all areas for years 2032 to 2041. Based on aggregated SA2-level projections, Kensington is expected to grow by 2,389 persons to 2041, reflecting a 20.3% increase over the 17-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, Kensington has recorded approximately 234 residential properties granted approval annually. Over the past five financial years, from FY-21 to FY-25, around 1,170 homes were approved, with a further 446 approved in FY-26 as of now. On average, 0.1 people have moved to the area per dwelling built over these years, indicating that new supply is keeping pace with or exceeding demand.

The average construction value of new homes is $300,000, consistent with regional patterns. In FY-26, $77.0 million in commercial approvals have been registered, suggesting strong commercial development momentum. Compared to Greater Melbourne, Kensington has 55.0% more development activity per person, offering buyers greater choice. However, development activity has moderated in recent periods. This activity is well above the national average, reflecting strong developer confidence in the area. All new construction since FY-21 has been medium and high-density housing, creating more affordable entry points for downsizers, investors, and first-home buyers. This marks a significant shift from the current housing mix, which is 17.0% houses.

Kensington reflects a developing area with approximately 63 people per approval. According to AreaSearch's latest quarterly estimate, Kensington is projected to add 2,379 residents by 2041. Based on current development patterns, new housing supply should readily meet demand, providing good conditions for buyers and potentially facilitating population growth beyond current projections.

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

The performance of an area can significantly influenced by changes to its local infrastructure, major projects, and planning initiatives. AreaSearch has identified a total of 36 such projects that are expected to impact the area. Notable among these are Younghusband Kensington, Assemble's 402-444 Macaulay Road Build-to-Rent project, West Melbourne Waterfront development, and Flemington Housing Precinct Renewal across various sites. The following list details those projects considered most relevant.

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

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The employment landscape in Kensington shows performance that lags behind national averages across key labour market indicators

Kensington's workforce is highly educated with professional services well represented. The unemployment rate was 6.8% in an unspecified past year. Employment grew by an estimated 4.5% during this period.

As of September 2025, 7,627 residents were employed, with an unemployment rate of 2.1% higher than Greater Melbourne's rate of 4.7%. Workforce participation was at 80.6%, compared to Greater Melbourne's 71.0%. Census data shows 52.7% of residents worked from home, potentially influenced by Covid-19 lockdowns. Dominant employment sectors include professional & technical, health care & social assistance, and education & training.

Kensington has a strong specialization in professional & technical services, with an employment share 1.7 times the regional level. Conversely, construction employs only 4.3% of local workers, below Greater Melbourne's 9.7%. While local employment opportunities exist, many residents commute elsewhere for work based on Census data comparison of working population to local population. In the 12-month period ending in an unspecified month, employment increased by 4.5%, and labour force grew by 4.9%, leading to a rise in unemployment rate by 0.4 percentage points. This contrasts with Greater Melbourne where employment rose by 3.0%, labour force grew by 3.3%, and unemployment rose by 0.3 percentage points. Jobs and Skills Australia's national employment forecasts from May-25 project overall employment 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 this is a simple extrapolation for illustrative purposes and does not account for localized population projections.

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

According to AreaSearch's aggregation of ATO data released on 30 June 2023 for financial year 2023, Kensington had a median income among taxpayers of $64,507 and an average income of $81,585. Nationally, the median income was $57,688 and the average was $75,164. By September 2025, these figures are estimated to be approximately $69,829 (median) and $88,316 (average), based on Wage Price Index growth of 8.25%. The 2021 Census data shows Kensington's household, family, and personal incomes rank between the 79th and 93rd percentiles nationally. Income distribution indicates that 31.5% of Kensington's population (3,688 individuals) fall within the $1,500 - 2,999 income range, similar to the metropolitan region where 32.8% occupy this bracket. Economic strength is evident with 36.0% of households earning high weekly incomes exceeding $3,000, supporting elevated consumer spending. 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 8th decile.

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

Kensington's dwelling structure, as per the latest Census, consisted of 17.2% houses and 82.8% other dwellings. In comparison, Melbourne metro had 67.9% houses and 32.1% other dwellings. Home ownership in Kensington was at 18.6%, with mortgaged dwellings at 31.2% and rented ones at 50.2%. The median monthly mortgage repayment in Kensington was $2,162, higher than Melbourne metro's $2,000. The median weekly rent figure in Kensington was $416, compared to Melbourne metro's $390. Nationally, Kensington's mortgage repayments were significantly higher at $2,162 versus 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 account for 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 make up 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 has a notably high educational attainment among residents aged 15 and above, with 59.1% holding university qualifications. This figure exceeds the national average of 30.4% and the Victorian state average of 33.4%. The area's educational advantage is evident in its distribution of qualifications: bachelor degrees are held by 35.5%, postgraduate qualifications by 18.3%, and graduate diplomas by 5.3%. Vocational pathways account for 17.3% of qualifications, with advanced diplomas at 8.5% and certificates at 8.8%.

Educational participation is notably high in Kensington, with 28.0% of residents currently enrolled in formal education. This includes 10.3% in tertiary education, 6.9% in primary education, and 4.8% pursuing 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 are served by four distinct routes, facilitating 4,527 weekly passenger trips in total. The area's transport accessibility is rated excellent, with residents typically residing 197 meters from the nearest stop. As predominantly residential, most commuters travel outward. Cars remain the primary mode of transport at 54%, followed by trains at 20% and cycling at 9%. Vehicle ownership averages 0.6 per dwelling, below the regional average.

According to the 2021 Census, 52.7% of residents work from home, which may be influenced by COVID-19 conditions. On average, service frequency is 646 trips daily across all routes, 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's health data shows positive outcomes, with mortality rates and health conditions similar to national averages. Common health conditions are less prevalent among the general population but higher among older, at-risk groups.

Private health cover is high, with 59% of Kensington residents having it compared to 56.7% in Greater Melbourne. Mental health issues (10.6%) and asthma (8.9%) are most common, while 71.7% report no medical ailments, slightly lower than Greater Melbourne's 72.6%. Under-65s have better-than-average health outcomes. Kensington has fewer seniors (10.9%, or 1,276 people) compared to Greater Melbourne (15.1%). Senior health outcomes present challenges but rank lower nationally than 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 has a higher cultural diversity than most local markets, with 32.2% of its population born overseas and 25.7% speaking a language other than English at home. Christianity is the predominant religion in Kensington, accounting for 29.0% of the population. However, Judaism is overrepresented compared to Greater Melbourne, comprising 0.3% versus 1.0%.

The top three ancestry groups are English (21.6%), Australian (18.4%), and Other (11.7%). Notably, Irish (10.9%) and Vietnamese (2.3%) populations are higher than the regional averages of 6.5% and 1.9%, respectively, while Sri Lankan population is lower at 0.5%.

Kensington's population is younger than the national pattern

Kensington's median age as of 2021 is 35 years, which is slightly younger than Greater Melbourne's 37 and somewhat younger than the national average of 38 years. The age group of 25-34 years shows strong representation in Kensington at 24.0%, compared to Greater Melbourne, while the 5-14 age group is less prevalent at 8.0%. This concentration of the 25-34 age group is well above the national average of 14.4%. Between 2021 and the present, the 15 to 24 age group has grown from 10.4% to 12.0% of Kensington's population. Conversely, the 45 to 54 age group has declined from 12.4% to 11.4%. Population forecasts for the year 2041 indicate substantial demographic changes in Kensington. The 45-54 age cohort is projected to rise substantially, increasing by 736 people (55%) from 1,334 to 2,071. Conversely, numbers in the 15-24 age range are expected to fall by approximately 2%.