Kensington (Vic.)

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

As of Nov 2025, the estimated population for the Kensington (Vic.) statistical area (Lv2) is around 11,707 people. This reflects a growth of 962 individuals since the 2021 Census, which recorded a population of 10,745 people in the same area. The estimated resident population of 11,699, as per AreaSearch's analysis of the latest ERP data release by the ABS (June 2024), and an additional 60 validated new addresses since the Census date, supports this increase. This results in a population density ratio of approximately 5,470 persons per square kilometer, placing Kensington (Vic.) within the top 10% of national locations assessed by AreaSearch. The area's 9.0% growth since census is close to the national average of 9.7%, indicating strong growth fundamentals. Overseas migration contributed around 73.0% of overall population gains in recent periods, driving primary growth for the area.

For future projections, AreaSearch adopts ABS/Geoscience Australia's projections released in 2024 with a base year of 2022 for each SA2 area. By 2041, based on aggregated SA2-level projections, the Kensington (Vic.) (SA2) is expected to expand by 2,389 persons, reflecting an overall gain of approximately 20.3% 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 using ABS building approval numbers from statistical area data, Kensington has had approximately 234 new homes approved annually. Between financial years FY-21 to FY-25, around 1,170 homes were approved, with an additional 446 approved in FY-26 so far. The average number of new residents per year arriving for each new home over the past five financial years is approximately 0.1.

New construction has been matching or outpacing demand, offering buyers more options and enabling population growth that could exceed current expectations. The average value of new dwellings developed is around $300,000, consistent with regional patterns. This year, there have been $77.0 million in commercial approvals, indicating high levels of local commercial activity. Compared to Greater Melbourne, Kensington shows 55.0% higher construction activity per person. Recent building activity consists entirely of attached dwellings, creating more affordable entry points and suiting downsizers, investors, and first-home buyers. This shift reflects decreasing availability of developable sites and changing lifestyles requiring diverse, affordable housing options. Currently, Kensington has around 63 people per approval, indicating a developing area.

According to the latest AreaSearch quarterly estimate, Kensington is projected to add approximately 2,381 residents by 2041. At current development rates, new housing supply should comfortably meet demand, providing good conditions for buyers and potentially supporting growth beyond current population projections.

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

Changes to local infrastructure significantly influence an area's performance. AreaSearch has identified 37 projects likely impacting the area. Notable projects include Younghusband Kensington, Assemble 402-444 Macaulay Road Build-to-Rent, Holland Court Flemington Housing Development, and West Melbourne Waterfront. 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.

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 6.8% as of the past year, with an estimated employment growth of 4.5%.

As of September 2025, 7,627 residents are employed, with an unemployment rate of 2.1% higher than Greater Melbourne's rate of 4.7%. Workforce participation in Kensington is at 74.8%, compared to Greater Melbourne's 64.1%. Local employment is concentrated in professional & technical, health care & social assistance, and education & training sectors. The area shows strong specialization in professional & technical services, with an employment share of 1.7 times the regional level, while construction employs only 4.3% of local workers, below Greater Melbourne's 9.7%.

Many residents commute elsewhere for work, as indicated by Census data on working population to local population count. In the 12 months prior to September 2025, employment in Kensington increased by 4.5%, while labour force grew by 4.9%, causing unemployment rate to rise by 0.4 percentage points. This contrasts with Greater Melbourne where employment rose by 3.0% and unemployment rose by 0.3 percentage points. State-level data as of 25-Nov shows Victoria's employment grew by 1.13% year-on-year, adding 41,950 jobs, with the state unemployment rate at 4.7%, compared to the national rate of 4.3%. Jobs and Skills Australia's national employment forecasts from May-25 suggest that national employment is projected to expand by 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, assuming constant population projections for illustrative purposes.

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 2023 shows that income in Kensington is extremely high nationally. The median 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 8.25% since financial year 2023, current estimates would be approximately $69,829 (median) and $88,316 (average) as of September 2025. According to the 2021 Census figures, household, family and personal incomes in Kensington rank highly nationally, between the 79th and 93rd percentiles. The earnings profile shows that 31.5% of locals (3,687 people) earn between $1,500 - 2,999 weekly, reflecting patterns seen in the metropolitan region where 32.8% similarly occupy this range. A significant 36.0% earn above $3,000 weekly. High housing costs consume 16.5% of income, but strong earnings still place disposable income at the 77th percentile nationally and the area's SEIFA income ranking places it in the 8th decile.

Kensington displays a diverse mix of dwelling types, with above-average rates of outright home ownership

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 2.2% houses and 97.8% 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, higher than Melbourne metro's average of $1,962. Median weekly rent in Kensington was $416, compared to Melbourne metro's $396. Nationally, Kensington's mortgage repayments were significantly higher at $2,162 versus the Australian average of $1,863, while rents were substantially above the national figure of $375.

Kensington features high concentrations of group households and lone person households, with a higher-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, larger than the Greater Melbourne average of 1.8.

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 30.4% nationally and 33.4% in Victoria. Bachelor degrees are 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 23 active public transport stops. These include train, light rail, and bus services. There are four routes serving these stops, which together facilitate 4,527 weekly passenger trips.

The average distance from residents to the nearest stop is 197 meters. On average, there are 646 trips per day across all routes, equating to approximately 196 weekly trips per individual stop.

The level of general health in Kensington is notably higher than the national average with prevalence of common health conditions low among the general population though higher than the nation's average across older, at risk cohorts

Kensington shows better-than-average health outcomes with a lower prevalence of common health conditions among its general population compared to national averages. However, older and at-risk cohorts have higher rates of these conditions.

Approximately 59% of Kensington's total population (6,908 people) has private health cover, which is higher than Greater Melbourne's average of 54.5%. The most common medical conditions in the area are mental health issues and asthma, affecting 10.6% and 8.9% of residents respectively. Conversely, 71.7% of Kensington residents report being completely free from medical ailments, compared to Greater Melbourne's 79.8%. Kensington has a higher proportion of seniors aged 65 and over, with 10.7% (1,252 people) compared to Greater Melbourne's 6.8%. Health outcomes among seniors in the area require more attention than those for 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 higher cultural diversity compared to most other local markets, with 32.2% born overseas and 25.7% speaking a language other than English at home. Christianity was the predominant religion in Kensington, making up 29.0% of its population. Notably, Judaism comprised 0.3%, slightly higher than Greater Melbourne's 0.4%.

The top three ancestry groups were English (21.6%), Australian (18.4%), and Other (11.7%). English was substantially higher than the regional average of 16.1%, while Australian was higher than the regional average of 11.5%. However, Other was notably lower than the regional average of 17.1%. There were notable divergences in certain ethnic groups: Irish at 10.9% (vs regional 6.6%), Vietnamese at 2.3% (vs regional 2.0%), and Sri Lankan at 0.5% (vs regional 0.4%).

Kensington's population is younger than the national pattern

Kensington's median age in 2021 was 35 years, which is slightly younger than Greater Melbourne's 37 and somewhat younger than Australia's national average of 38 years. The 25-34 age group comprised 24.4% of Kensington's population, higher than Greater Melbourne but lower than the national average of 14.5%. The 5-14 age group made up 8.1% of Kensington's population in 2021. Between 2021 and present, the 15-24 age group has increased from 10.4% to 11.7% of Kensington's population, while the 45-54 age group has decreased from 12.4% to 11.4%. By 2041, demographic forecasts indicate that the 45-54 age cohort in Kensington is projected to rise significantly by 736 people (55%), from 1,334 to 2,071. Meanwhile, the 0-4 age group is expected to grow modestly by 5% (32 people).