Preston (Vic.)

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

Based on analysis of ABS population updates for the broader area, and new addresses validated by AreaSearch since the Census, Preston's population is estimated at around 37,129 as of February 2026. This reflects an increase of 3,339 people (9.9%) since the 2021 Census, which reported a population of 33,790 people. The change is inferred from the resident population of 36,473 estimated by AreaSearch following examination of the latest ERP data release by the ABS 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 it in the upper quartile relative to national locations assessed by AreaSearch. Preston's 9.9% growth since census positions it within 1.2 percentage points of the state (11.1%), demonstrating competitive growth fundamentals. Population growth for the area was primarily driven by overseas migration that contributed approximately 83.0% of overall population gains during recent periods.

AreaSearch is adopting ABS/Geoscience Australia projections for each SA2 area, as released in 2024 with 2022 as the base year. For any SA2 areas not covered by this data, AreaSearch is utilising the VIC State Government's Regional/LGA projections released in 2023 with adjustments made employing a method of weighted aggregation of population growth from LGA to SA2 levels. Growth rates by age group from these aggregations are also applied across all areas for years 2032 to 2041. Moving forward with demographic trends, exceptional growth, placing in the top 10 percent of national statistical areas, is predicted over the period with the suburb of Preston (Vic.) expected to increase by 19,341 persons to 2041 based on aggregated SA2-level projections, reflecting an increase of 50.3% in total over the 17 years.

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

AreaSearch analysis of ABS building approval numbers indicates Preston has seen around 362 dwelling approvals annually over the past five financial years, totalling approximately 1,812 homes. As of FY-26563 approvals have been recorded. On average, 0.7 new residents per year have arrived per new home between FY-21 and FY-25, suggesting supply meets or exceeds demand. New homes are constructed at an average value of $441,000.

In FY-26, $217.1 million in commercial approvals have been registered. Preston's development consists of 8% detached dwellings and 92% medium to high-density housing, a significant shift from the current 56% houses. Population forecasts indicate Preston will gain 18,682 residents by 2041. If current development rates continue, housing supply may not keep pace with population growth.

Population forecasts indicate Preston will gain 18,682 residents through to 2041 (from the latest AreaSearch quarterly estimate). 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 can significantly influenced by changes in local infrastructure, major projects, and planning initiatives. AreaSearch has identified a total of 39 such projects that could 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.

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 Preston remain below the national average according to AreaSearch analysis

Preston has an educated workforce with professional services well represented. The unemployment rate was 4.5% in the past year, with estimated employment growth of 1%. As of September 2025, 22,027 residents are employed, with an unemployment rate of 4.6%, slightly below Greater Melbourne's 4.7%.

Workforce participation is 73.2%, close to Greater Melbourne's 71.0%. Home workership was high at 40.6% in Preston. Key industries include health care & social assistance, education & training, and professional & technical services. Education & training has a strong presence with an employment share of 1.3 times the regional level.

Construction is under-represented at 7.0%, compared to Greater Melbourne's 9.7%. The worker-to-resident ratio is 0.6, indicating local employment opportunities above average. Between September 2024 and September 2025, employment increased by 1.0% while labour force grew by 0.4%, reducing unemployment by 0.6 percentage points. In contrast, Greater Melbourne saw employment growth of 3.0%, labour force growth of 3.3%, and a slight rise in unemployment. Jobs and Skills Australia's May-25 forecasts project national employment growth of 6.6% over five years and 13.7% over ten years. Applying these projections to Preston's industry mix suggests local employment should increase by 6.8% over five years and 13.9% over ten years, though these are simple extrapolations for illustrative purposes only.

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

AreaSearch aggregated latest postcode-level ATO data released for financial year ending June 2023. In Preston, median taxpayer income was $57,063, with an average of $70,526. This is above national averages of $54,198 (median) and $71,478 (average). Greater Melbourne's figures were $57,688 (median) and $75,164 (average). Adjusting for Wage Price Index growth of 8.25% by September 2025, estimated incomes would be approximately $61,771 (median) and $76,344 (average). The 2021 Census places Preston at the 58th percentile nationally for household, family, and personal incomes. Income distribution shows 33.2% of locals (12,326 people) earn between $1,500 and $2,999, similar to regional levels at 32.8%. High housing costs consume 16.5% of income, but strong earnings place disposable income at the 56th percentile. 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

In Preston, as per the latest Census evaluation, 55.7% of dwellings were houses while 44.2% consisted of other types such as semi-detached homes, apartments and 'other' dwellings. This contrasts with Melbourne metro's figures of 67.9% houses and 32.1% other dwellings. Home ownership in Preston stood at 27.9%, with mortgaged dwellings making up 30.9% and rented dwellings accounting for 41.1%. The median monthly mortgage repayment in Preston was $2,000, aligning with Melbourne metro's average. However, the median weekly rent figure was recorded at $392 compared to Melbourne metro's $390. Nationally, Preston's median mortgage repayments were higher than the Australian average of $1,863, and rents exceeded the national figure of $375.

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

Family households account for 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 constitute 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 level of educational attainment among its residents aged 15 and above, with 43.1% holding university qualifications. This figure surpasses both the national average of 30.4% for Australia and the SA4 region's average of 32.8%. The area's strong educational advantage is reflected in a variety of qualifications: Bachelor degrees are most prevalent 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 making up 10.4% and certificates accounting for 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, consisting of lightrail and bus services. These stops are served by 24 different routes, facilitating a total of 16,112 weekly passenger trips. The average distance from residents' homes to the nearest transport stop is 163 meters. Most commuters travel outward due to Preston's residential nature. Car remains the primary mode of transportation at 70%, with train usage at 10% and cycling at 4%. The average vehicle ownership per dwelling is 0.9, 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. On average, there are 2,301 trips daily across all routes, equating to approximately 76 weekly trips per stop. The accompanying map displays 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 align closely with national benchmarks, according to AreaSearch's assessment of mortality rates and chronic condition prevalence.

Common health conditions are slightly more prevalent than average across both younger and older age groups. Approximately 55% (~20,309 people) of Preston's total population has private health cover. The most common medical conditions in the area are mental health issues (10.5%) and asthma (7.9%). About 69.8% of residents claim to be completely clear of medical ailments, compared to 72.6% across Greater Melbourne. Health outcomes among Preston's working-age population are generally typical. The area has 14.0% (5,198 people) of residents aged 65 and over, which is lower than the 15.1% in Greater Melbourne. National rankings for health metrics are 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's population includes 33.7% born overseas and 35.3% speaking languages other than English at home. Christianity is the predominant religion, practiced by 38.7%. Islam is slightly overrepresented in Preston with 5.2%, compared to Greater Melbourne's 5.6%.

The top three ancestral groups are English (18.0%), Australian (16.1%), and Other (11.2%). Notably, Greeks comprise 6.7% of Preston's population versus 2.7% regionally, Macedonians make up 2.1% compared to 0.7%, and Italians account for 9.5% versus 5.2%.

Preston's population is slightly younger than the national pattern

Preston has a median age of 37, which is equal to Greater Melbourne's figure and comparable to Australia's 38 years. The 25-34 age group makes up 19.0% of Preston's population compared to Greater Melbourne, while the 5-14 cohort constitutes 8.9%. Between 2021 and present, the 15 to 24 age group has increased from 10.2% to 11.2% of Preston's population. Conversely, the 25 to 34 cohort has decreased from 19.8% to 19.0%. By 2041, demographic projections indicate significant shifts in Preston's age structure, with the 45-54 group expected to grow by 68%, adding 3,361 people to reach a total of 8,300 from the current figure of 4,938.