Preston (Vic.)

Population growth drivers in Preston are strong compared to national averages based on AreaSearch's ranking of recent, and medium to long-term trends

The population of Preston (Vic.) was estimated at around 37,148 as of Nov 2025, according to AreaSearch's analysis of ABS population updates and new addresses. This reflects a growth of 3,358 people since the 2021 Census, which reported a population of 33,790. The estimated resident population was 36,472 in June 2024, based on AreaSearch's examination of ABS' latest ERP data release and additional validated new addresses since the Census date. Preston's population density is 3,230 persons per square kilometer, placing it in the upper quartile nationally according to AreaSearch assessments. The suburb's 9.9% growth rate since the 2021 census exceeds both national (8.9%) and state averages, marking it as a growth leader. Overseas migration contributed approximately 83.0% of Preston's overall population gains during recent periods.

AreaSearch uses ABS/Geoscience Australia projections for each SA2 area released in 2024 with a base year of 2022, and VIC State Government's Regional/LGA projections from 2023 adjusted to SA2 levels for areas not covered by the ABS data. Future population growth is predicted to be exceptional, placing Preston in the top 10 percent nationally, with an expected increase of 19,344 persons to 2041 based on aggregated SA2-level projections, reflecting a total gain of 50.2% over the period.

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

Based on AreaSearch analysis using ABS building approval numbers from statistical area data, Preston has recorded approximately 362 residential properties granted approval each year. Over the past five financial years, between FY-21 and FY-25, around 1,813 homes were approved, with a further 541 approved so far in FY-26. On average, over these five years, 0.7 new residents arrived per new home, indicating that supply has been meeting or exceeding demand, providing greater buyer choice and supporting potential population growth above projections.

The average construction cost value of new homes was $441,000, consistent with regional patterns. In FY-26, there have been $217.0 million in commercial approvals, demonstrating high levels of local commercial activity. New building activity shows 9.0% detached houses and 91.0% townhouses or apartments, marking a significant shift from existing housing patterns (currently 56.0% houses), suggesting diminishing developable land availability and responding to evolving lifestyle preferences and housing affordability needs. With around 95 people per dwelling approval, Preston shows characteristics of a growth area.

According to the latest AreaSearch quarterly estimate, Preston is expected to grow by 18,666 residents through to 2041. Should current construction levels persist, housing supply could lag population growth, potentially intensifying buyer competition and underpinning price growth.

Preston 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 has identified 39 projects likely to affect the area. Notable ones include North East Link Project, Preston Crossing, Preston Market Precinct Redevelopment, and 18a Miller Street Development - Small Sites Pilot Program. The following list details those most relevant.

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

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

Preston has an educated workforce with strong professional services representation. Its unemployment rate was 4.1% in the past year, with estimated employment growth of 2.8%.

As of June 2025, Preston's unemployment rate is 0.5% lower than Greater Melbourne's at 4.6%, with a workforce participation rate of 67.4%. Key industries include health care & social assistance, education & training, and professional & technical services, notably education & training which has an employment share 1.3 times the regional level. Construction is under-represented, with Preston having 7.0% compared to Greater Melbourne's 9.7%. The worker-to-resident ratio of 0.6 indicates above-average local employment opportunities.

Between June 2024 and June 2025, employment in Preston increased by 2.8% while labour force grew by 1.5%, reducing unemployment by 1.2 percentage points. In contrast, Greater Melbourne saw employment grow by 3.5%, labour force expand by 4.0%, and unemployment rise by 0.5 percentage points. Jobs and Skills Australia's national employment forecasts from Sep-22 project a 6.6% increase over five years and 13.7% over ten years. Applying these projections to Preston's employment mix suggests local employment could grow by 6.8% in five years and 13.9% in ten years.

Income analysis reveals strong economic positioning, with the area outperforming 60% of locations assessed nationally by AreaSearch

In Preston, AreaSearch's postcode level ATO data for financial year 2022 shows median income at $57,061 and average income at $70,524. This is higher than Greater Melbourne's median income of $54,892 and average income of $73,761. Based on a 12.16% Wage Price Index growth since financial year 2022, estimated incomes for September 2025 would be approximately $64,000 (median) and $79,100 (average). The 2021 Census reveals Preston's household, family and personal incomes cluster around the 58th percentile nationally. The earnings profile shows that 33.2% of locals (12,333 people) earn between $1,500 - 2,999, similar to the regional pattern where 32.8% fall within this range. High 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 above-average rates of outright home ownership

In Preston, as per the latest Census evaluation, 55.7% of dwellings were houses, with the remaining 44.2% being semi-detached homes, apartments, or other types. In contrast, Melbourne metropolitan area had no recorded houses and other dwellings at the time of the Census. Home ownership in Preston stood at 27.9%, with mortgaged properties accounting for 30.9% and rented dwellings making up 41.1%. The median monthly mortgage repayment in Preston was $2,000, aligning with Melbourne's metropolitan average. However, the median weekly rent in Preston was $392, unlike Melbourne metro which had no recorded rental figures at that time. Nationally, Preston's median monthly mortgage repayments exceeded the Australian average of $1,863, and rents surpassed the national figure of $375 per week.

Preston features high concentrations of group households, with a median household size of 2.4 people

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 comprise the remaining 38.0%, with lone person households at 29.7% and group households making up 8.3%. The median household size is 2.4 people.

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

Preston has a higher educational attainment than national and regional averages. 43.1% of its residents aged 15 and above have university qualifications, compared to 30.4% in Australia and 32.8% in the SA4 region. Bachelor degrees are 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, 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. As of a recent report, 16 schools serve 5,648 students in Preston. The area's socio-educational conditions are above average (ICSEA: 1085). Educational infrastructure is strong, with 15.2 school places per 100 residents serving both local and surrounding communities.

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

Preston has 205 active transport stops operating, serving a mix of train, light rail, and bus services. These stops are covered by 22 individual routes that collectively facilitate 19,255 weekly passenger trips. The city's transport accessibility is rated as excellent, with residents typically located just 163 meters from the nearest transport stop.

Across all routes, service frequency averages 2,750 trips per day, equating to approximately 93 weekly trips per individual stop.

Preston'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

Health data shows Preston residents have relatively positive health outcomes.

Common health condition prevalence is low among the general population but higher in older, at-risk cohorts compared to national averages. Approximately 55% (~20,319 people) of Preston's total population has private health cover. Mental health issues and asthma are the most common medical conditions, affecting 10.5 and 7.9% of residents respectively. About 69.8% declare themselves completely clear of medical ailments, compared to 0% in Greater Melbourne. Preston has 13.6% (5,052 people) of its population aged 65 and over, requiring more attention than the broader population.

Preston is among the most culturally diverse areas in the country based on AreaSearch assessment of a range of language and cultural background related metrics

Preston has a high level of cultural diversity, with 33.7% of its population born overseas and 35.3% speaking a language other than English at home. Christianity is the main religion in Preston, making up 38.7% of the population. Islam is overrepresented in Preston compared to Greater Melbourne, comprising 5.2% versus None%.

The top three represented ancestry groups are English (18.0%), Australian (16.1%), and Other (11.2%). Notably, Greek (6.7%), Macedonian (2.1%), and Italian (9.5%) ethnicities are overrepresented in Preston compared to regional figures of None%.

Preston's population is slightly younger than the national pattern

Preston has a median age of 37, matching Greater Melbourne's figure and closely resembling Australia's median age of 38. The 25-34 age group is strongly represented at 19.6%, higher than Greater Melbourne's percentage, while the 5-14 cohort is less prevalent at 9.0%. This concentration of individuals aged 25-34 is significantly above the national average of 14.5%. Between 2021 and present day, the 15 to 24 age group has increased from 10.2% to 11.0% of Preston's population. Conversely, the 5 to 14 cohort has decreased from 9.7% to 9.0%. By 2041, demographic projections indicate substantial shifts in Preston's age structure, with the 45 to 54 group expected to grow by 67%, reaching 8,299 people from its current figure of 4,977.