Kensington (Vic.)

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

As per ABS population updates and AreaSearch validation, the estimated population of Kensington (Vic.) is around 11,709 as of Feb 2026. This shows an increase of 964 people since the 2021 Census, which reported a population of 10,745. The current resident population estimate of 11,699 by AreaSearch is based on examination of ABS's latest ERP data release (June 2024) and an additional 70 validated new addresses since the Census date. This results in a density ratio of 5,471 persons per square kilometer, placing Kensington among the top 10% of national locations assessed by AreaSearch. The suburb's population growth of 9.0% since the census is within 0.9 percentage points of the national average (9.9%), indicating strong growth fundamentals. Overseas migration contributed approximately 73.0% of overall population gains during recent periods, driving primary growth in Kensington.

AreaSearch adopts 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 uses VIC State Government's Regional/LGA projections from 2023, adjusted employing weighted aggregation methods to SA2 levels. Growth rates by age group are applied across all areas for years 2032 to 2041. Future population dynamics project an above median growth for the suburb, with an expected increase of 2,388 persons to 2041 based on aggregated SA2-level projections, reflecting a total increase of 20.3% over the 17 years.

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

AreaSearch analysis of ABS building approval numbers in Kensington shows around 234 residential properties granted approval per year. Over the past five financial years, from FY-21 to FY-25, approximately 1,170 homes were approved, with a further 446 approved so far in FY-26. This results in an average of only 0.1 people moving to the area for each dwelling built over these years, indicating that new supply is keeping pace with or exceeding demand.

The average construction cost value of new homes is $300,000, consistent with regional patterns. In FY-26, $77.0 million in commercial approvals have been registered, reflecting 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. Nationally, Kensington's activity is well above average, indicating strong developer confidence in the area. All new construction consists of medium and high-density housing, creating more affordable entry points for downsizers, investors, and first-home buyers. This marks a significant change from the current housing mix, which is currently 17.0% houses.

Kensington reflects a developing area with around 63 people per approval. Future projections estimate Kensington adding 2,378 residents by 2041. 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.

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 36 projects that could affect the region. Notable ones include Younghusband Kensington, Assemble 402-444 Macaulay Road Build-to-Rent, West Melbourne Waterfront, and Flemington Housing Precinct Renewal (Various Sites). The following list details those most likely to be 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.

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

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

Workforce participation was at 80.8%, compared to Greater Melbourne's 71.3%. According to Census responses, 52.7% of residents worked from home, though Covid-19 lockdown impacts should be considered. The dominant employment sectors among residents include professional & technical, health care & social assistance, and education & training. Kensington shows strong specialization in professional & technical services, with an employment share 1.7 times the regional level, while construction employs only 4.3% of local workers, below Greater Melbourne's 9.7%.

Many residents appear to commute elsewhere for work based on Census data comparing working population to local population. In the 12-month period ending in an unspecified date, employment increased by 3.6% alongside labour force growth of 4.6%, causing the unemployment rate to rise by 0.9 percentage points. This contrasts with Greater Melbourne, where employment rose by 2.4%, the labour force grew by 2.8%, and unemployment rose by 0.3 percentage points. Jobs and Skills Australia's national employment forecasts from May-25 suggest potential future demand within Kensington. These projections estimate national employment growth of 6.6% over five years and 13.7% over ten years, with significant variations between industry sectors. 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 weighting 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 the latest postcode level ATO data released on June 30, 2023, Kensington had a median income among taxpayers of $64,507 and an average income of $81,585. Nationally, these figures are extremely high compared to the national averages of $57,688 and $75,164 respectively for Greater Melbourne. Based on Wage Price Index growth of 8.25% since June 30, 2023, current estimates project median income at approximately $69,829 and average income at around $88,316 by September 2025. The 2021 Census data ranks Kensington's household, family, and personal incomes highly, between the 79th and 93rd percentiles nationally. Income distribution shows that 31.5% of Kensington's population (3,688 individuals) falls within the $1,500 - $2,999 income range, closely mirroring the metropolitan region where 32.8% occupy this bracket. Economic strength is evident with 36.0% of households achieving high weekly earnings 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 (semi-detached, apartments, 'other' dwellings). This contrasts with Melbourne metro's composition 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 dwellings at 50.2%. The median monthly mortgage repayment in the area was $2,162, higher than Melbourne metro's average of $2,000. Median weekly rent 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 constitute 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 comprise the remaining 43.7%, with lone person households at 34.9% and group households making up 8.8%. The median household size is 2.1 people, 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% hold university qualifications, compared to 30.4% in Australia and 33.4% in Victoria. 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% of qualifications, 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 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 active public transport stops offering a mix of lightrail and bus services. These are covered by four routes, serving 4,527 weekly passenger trips in total. The average distance to the nearest stop for residents is 197 meters. Most commuting is outward-bound due to Kensington's residential nature. Cars remain the primary mode of transport at 54%, followed by trains at 20% and cycling at 9%. There are on average 0.6 vehicles 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. Across all routes, service frequency averages 646 trips per day, equating to about 205 weekly trips per 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 show positive health outcomes, according to AreaSearch's analysis. Mortality rates and health conditions align with national benchmarks.

Common health condition prevalence is low but higher among older, at-risk cohorts. Private health cover stands at 59% (6,909 people), compared to Greater Melbourne's 56.7%. Mental health issues affect 10.6%, asthma impacts 8.9%. 71.7% report no medical ailments. Under-65s show better health outcomes than average. Kensington has 11.1% residents aged 65 and over (1,299 people), lower than Greater Melbourne's 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's population exhibited 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%. Judaism, however, was overrepresented in Kensington at 0.3%, compared to Greater Melbourne's 1.0%.

The top three ancestry groups were English (21.6%), Australian (18.4%), and Other (11.7%). Notable variations existed among certain ethnicities: Irish (10.9% vs regional 6.5%), Vietnamese (2.3% vs 1.9%), and Sri Lankan (0.5% vs 0.8%).

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 median age of 37 and somewhat younger than the national average of 38 years. The 25-34 age group constitutes 24.0% of Kensington's population, compared to Greater Melbourne's percentage, while the 5-14 age group makes up 8.0%. This concentration of the 25-34 age group is higher than the national average of 14.4%. Between 2021 and present, the 15 to 24 age group has grown from 10.4% to 12.0%, while the 45 to 54 age cohort has declined from 12.4% to 11.5%. Population forecasts for Kensington in 2041 indicate significant demographic changes. The 45-54 age group is projected to rise substantially, increasing by 726 people (54%) from 1,346 to 2,073. Conversely, the number of individuals in the 15 to 24 age range is expected to decrease.