Preston (Vic.)

Population growth drivers in Preston are above average based on AreaSearch's ranking of recent, and medium to long-term trends

As of Feb 2026, the estimated population of Preston (Vic.) is around 37,129. This reflects an increase of 3,339 people since the 2021 Census, which reported a population of 33,790. The change is inferred from AreaSearch's estimation of the resident population at 36,473 following examination of ABS' latest ERP data release in June 2024 and an additional 823 validated new addresses since the Census date. This level of population equates to a density ratio of 3,228 persons per square kilometer, placing Preston in the upper quartile relative to national locations assessed by AreaSearch. Preston's growth rate of 9.9% since census positions it within 1.2 percentage points of the state (11.1%). Population growth was primarily driven by overseas migration contributing approximately 83.0% of overall population gains during recent periods.

AreaSearch is adopting ABS/Geoscience Australia projections for each SA2 area, released in 2024 with a base year of 2022. For areas not covered, AreaSearch utilises VIC State Government's Regional/LGA projections released in 2023, adjusted employing weighted aggregation from LGA to SA2 levels. Growth rates by age group are applied across all areas for years 2032 to 2041. Considering projected demographic shifts, exceptional growth is predicted over the period with Preston expected to grow by 19,389 persons to 2041 based on aggregated SA2-level projections, reflecting an increase of 50.5% in total over the 17 years.

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

Based on AreaSearch analysis of ABS building approval numbers allocated from statistical area data, Preston has averaged approximately 362 new dwelling approvals annually over the past five financial years, totalling an estimated 1812 homes. So far in FY-26575 approvals have been recorded. This averages to around 0.7 people moving to the area per dwelling built annually between FY-21 and FY-25, indicating that new supply is keeping pace with or exceeding demand. The average construction value of these properties is approximately $441,000, which is moderately above regional levels, suggesting an emphasis on quality construction.

In FY-26, $217.1 million in commercial approvals have been registered, indicating strong commercial development momentum. Recent construction comprises 8% detached dwellings and 92% townhouses or apartments, marking a shift from the area's existing housing composition of 56% houses. This skew towards compact living offers affordable entry pathways and attracts downsizers, investors, and first-time purchasers. Preston is currently showing characteristics of a growth area, with around 96 people per dwelling approval.

According to AreaSearch's latest quarterly estimate, Preston is forecasted to gain approximately 18733 residents by 2041. If current development rates continue, housing supply may not keep pace with population growth, potentially increasing competition among buyers and supporting stronger price growth.

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

The performance of an area is significantly influenced by changes in local infrastructure, major projects, and planning initiatives. AreaSearch has identified a total of 39 projects that are expected to impact the area. Notable projects include the North East Link Project, Preston Crossing, Preston Market Precinct Redevelopment, and the 18a Miller Street Development - Small Sites Pilot Program. The following list details those projects likely to be most relevant.

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

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Employment conditions in Preston remain below the national average according to AreaSearch analysis

Preston has an educated workforce with professional services well represented. Its unemployment rate was 4.9% in the past year, showing a growth of 1.1%. As of December 2025, Preston's unemployment rate was 4.9%, slightly higher than Greater Melbourne's 4.8%.

Workforce participation was at 73.9%, close to Greater Melbourne's 71.3%. A significant portion, 40.6% of residents, worked from home, potentially influenced by Covid-19 lockdowns. The dominant employment sectors were health care & social assistance, education & training, and professional & technical services. Education & training had a strong representation with an employment share 1.3 times the regional level.

Conversely, construction showed lower representation at 7.0% compared to the regional average of 9.7%. The worker-to-resident ratio was 0.6, indicating ample local employment opportunities. Between December 2024 and November 2025, Preston's employment grew by 1.1%, while the labour force increased by 1.4%, leading to a rise in unemployment rate of 0.2 percentage points. In comparison, Greater Melbourne saw employment grow by 2.4% and labour force expand by 2.8%. 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 Preston's employment mix suggests local employment should increase by 6.8% over five years and 13.9% over ten years, though this is a simplified extrapolation for illustrative purposes only.

The economic profile demonstrates above-average performance, with income metrics exceeding national benchmarks based on AreaSearch comparative assessment

AreaSearch's aggregation of latest postcode level ATO data released for financial year ending June 2023 indicates Preston had a median income among taxpayers of $57,063 and an average level of $70,526. This is above the national average of $57,688 and Greater Melbourne's average of $75,164. Based on Wage Price Index growth of 8.25% from financial year ending June 2023 to September 2025, estimated median income would be approximately $61,771 and average income $76,344 as of the latter date. According to Australian Bureau of Statistics Census data for 2021, incomes in Preston cluster around the 58th percentile nationally. The $1,500 - $2,999 income bracket dominates with 33.2% of residents (12,326 people), similar to the surrounding region at 32.8%. Housing costs consume 16.5% of income, but strong earnings place disposable income at the 56th percentile nationally. The area's SEIFA income ranking places it in the 7th decile.

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

Preston's dwelling structures, as per the latest Census, consisted of 55.7% houses and 44.2% other dwellings (semi-detached, apartments, 'other' dwellings). In comparison, Melbourne metro had 67.9% houses and 32.1% other dwellings. Home ownership in Preston was at 27.9%, with mortgaged dwellings at 30.9% and rented ones at 41.1%. The median monthly mortgage repayment in Preston was $2,000, aligning with Melbourne metro's average. The median weekly rent in Preston was $392, compared to Melbourne metro's $390. Nationally, Preston's mortgage repayments exceeded the Australian average of $1,863, while rents surpassed the national figure of $375.

Preston features high concentrations of group households, with a lower-than-average median household size

Family households constitute 62.0% of all households, including 26.5% couples with children, 23.8% couples without children, and 9.7% single parent families. Non-family households make up the remaining 38.0%, with lone person households at 29.7% and group households comprising 8.3% of the total. The median household size is 2.4 people, which is smaller than the Greater Melbourne average of 2.6.

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

Preston has a notably high educational attainment among residents aged 15 and above, with 43.1% holding university qualifications. This figure exceeds the national average of 30.4% and the SA4 region's average of 32.8%, indicating a significant educational advantage for the area. Bachelor degrees are the most common at 27.4%, followed by postgraduate qualifications (11.2%) and graduate diplomas (4.5%). Vocational pathways account for 23.4% of qualifications, with advanced diplomas at 10.4% and certificates at 13.0%.

Educational participation is high in Preston, with 28.2% of residents currently enrolled in formal education. This includes 8.0% in tertiary education, 7.6% in primary education, and 5.8% pursuing secondary education.

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

Preston has 211 active public transport stops offering a mix of lightrail and bus services. These are served by 24 individual routes, providing 16,112 weekly passenger trips in total. Transport accessibility is high, with residents on average located 163 meters from the nearest stop. Most residents commute outward daily. Car remains the primary mode of transport at 70%, followed by train at 10% and cycling at 4%. Vehicle ownership averages 0.9 per dwelling, lower than the regional average.

According to the 2021 Census, 40.6% of residents work from home, which may be influenced by COVID-19 conditions. The service frequency averages 2,301 trips per day across all routes, equating to around 76 weekly trips per stop on average. A map accompanies the analysis, displaying the 100 nearest stops to the location's centrepoint.

Preston's residents are relatively healthy in comparison to broader Australia with common health conditions slightly more prevalent than average across both younger and older age cohorts

Preston's health metrics are close to national benchmarks, as assessed by AreaSearch using mortality rates and chronic condition prevalence.

Common health conditions are slightly more prevalent than average across both younger and older age cohorts. Private health cover is found to be fairly high at approximately 55% of the total population (~20,309 people). The most common medical conditions in the area are mental health issues and asthma, affecting 10.5 and 7.9% of residents respectively. 69.8% of residents declare themselves completely clear of medical ailments, compared to 72.6% across Greater Melbourne. Health outcomes among the working-age population are broadly typical. The area has 14.2% of residents aged 65 and over (5,272 people), with national rankings broadly in line with the general population.

Preston 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

Preston has a high cultural diversity, with 33.7% of its population born overseas and 35.3% speaking a language other than English at home. Christianity is the predominant religion in Preston, comprising 38.7% of the population. Islam is slightly overrepresented in Preston compared to Greater Melbourne, making up 5.2% versus 5.6%.

The top three ancestry groups in Preston are English (18.0%), Australian (16.1%), and Other (11.2%). Notably, Greek (6.7%) and Macedonian (2.1%) ethnicities are overrepresented in Preston compared to the regional averages of 2.7% and 0.7%, respectively. Italian ethnicity is also notably present at 9.5%.

Preston's population is slightly younger than the national pattern

Preston has a median age of 37 years, matching Greater Melbourne and closely resembling Australia's median age of 38 years. The 25-34 age group constitutes 19.0% of Preston's population, higher than Greater Melbourne's figure. Conversely, the 5-14 age group makes up 8.9%, which is lower compared to Greater Melbourne. Between 2021 and present, the 15-24 age group has increased from 10.2% to 11.1%. During this period, the 25-34 age group has decreased from 19.8% to 19.0%. By 2041, demographic projections indicate significant changes in Preston's age structure. Notably, the 45-54 age group is projected to grow by 68%, adding 3,369 people and reaching a total of 8,308 from its current figure of 4,938.