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 37,702 as of May 2026. This reflects an increase of 3,912 people (11.6%) since the 2021 Census, which reported a population of 33,790 people. The change is inferred from the resident population of 37,392 estimated by AreaSearch following examination of the latest ERP data release by the ABS in June 2025 and an additional 821 validated new addresses since the Census date. This level of population equates to a density ratio of 3,278 persons per square kilometer, placing it in the upper quartile relative to national locations assessed by AreaSearch. Preston's 11.6% growth since the 2021 census exceeded the state (9.3%), along with the national average, marking it as a growth leader in the region. 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, 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. Considering the projected demographic shifts, exceptional growth is predicted over the period with the suburb of Preston (Vic.) expected to increase by 18,762 persons to 2041 based on aggregated SA2-level projections, reflecting an increase of 48.9% in total over the 16 years.

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

AreaSearch analysis of ABS building approval numbers shows Preston recorded approximately 362 residential properties granted approval annually. Between FY-21 and FY-25, around 1,812 homes were approved, with a further 672 approved in FY-26 so far. Over the past five financial years, an average of 0.7 new residents arrived per new home built.

This suggests that new construction is meeting or exceeding demand, providing more options for buyers and enabling population growth. The average value of new homes being constructed is $441,000, slightly above the regional average. In FY-26, commercial development approvals totalled $217.1 million, indicating strong local business investment. New development consists of 8.0% detached dwellings and 92.0% attached dwellings, reflecting a focus on higher-density living to create more affordable entry points for downsizers, investors, and first-home buyers.

This represents a significant shift from the current housing mix, which is currently 56.0% houses. Preston has an average of around 96 people per approval, indicating a developing area. According to AreaSearch's latest quarterly estimate, Preston is expected to grow by 18,452 residents by 2041. If current development rates continue, housing supply may struggle to keep pace with population growth, potentially increasing buyer competition and supporting price increases.

Preston 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 that may impact this region. Notable initiatives include Preston Crossing, Preston Market Precinct Redevelopment, 18a Miller Street Development under the Small Sites Pilot Program, and Preston Central Infrastructure Contributions. 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.

Preston has seen below average employment performance when compared to national benchmarks

Preston's workforce is highly educated with professional services well represented. The unemployment rate was 4.9% in the past year, showing an estimated employment growth of 1.2%. As of December 2025, there were 22,164 employed residents, with an unemployment rate of 4.9%, slightly higher than Greater Melbourne's 4.8%.

Workforce participation was similar to Greater Melbourne at 69.9%. Home-based work was high at 40.6% due to Covid-19 impacts. Key industries were health care & social assistance, education & training, and professional & technical services. Education & training had a particularly high employment share of 1.3 times the regional level.

Construction employed only 7.0%, below Greater Melbourne's 9.7%. The worker-to-resident ratio was 0.6, indicating above-normal local employment opportunities. Between December 2024 and December 2025, employment levels increased by 1.2% and labour force grew by 1.4%, raising the unemployment rate by 0.2 percentage points. In contrast, Greater Melbourne saw employment rise by 2.4%, labour force grow by 2.8%, and unemployment increase by 0.3 percentage points. Jobs and Skills Australia's national employment forecasts from May-25 project a 6.6% expansion 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, based on simple weighting extrapolations for illustrative purposes.

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

According to AreaSearch's aggregation of the latest postcode level ATO data released for financial year ending June 2023, the suburb of Preston had a median income among taxpayers of $57,063 with the average level standing at $70,526. This is higher than the national average and compares to levels of $57,688 and $75,164 across Greater Melbourne respectively. Based on Wage Price Index growth of 9.62% from financial year ending June 2023 to March 2026, current estimates would be approximately $62,552 (median) and $77,311 (average). Census data reveals household, family and personal incomes in Preston cluster around the 58th percentile nationally. Distribution data shows the predominant cohort spans 33.2% of locals (12,517 people) with incomes between $1,500 - 2,999, aligning with the broader area where this cohort likewise represents 32.8%. High housing costs consume 16.5% of income, though strong earnings still place disposable income at the 56th percentile and 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 was $2,000, aligning with Melbourne metro's average. The median weekly rent was $392, compared to Melbourne metro's $390. Nationally, Preston's mortgage repayments exceeded the Australian average of $1,863, and 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 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, 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% and the SA4 region average of 32.8%. The area's strong educational advantage is reflected in its high proportion of residents with bachelor degrees (27.4%), postgraduate qualifications (11.2%), and graduate diplomas (4.5%). Vocational pathways are also well-represented, accounting for 23.4% of qualifications among those aged 15 and above, with advanced diplomas making up 10.4% and certificates 13.0%.

Educational participation is notably high in Preston, with 28.2% of residents currently enrolled in formal education. This includes 8.0% pursuing tertiary education, 7.6% in primary education, and 5.8% in 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 buses. These are served by 24 routes, providing 16,112 weekly passenger trips in total. The average distance to the nearest stop is 163 meters, indicating excellent accessibility. Most residents commute outward daily. Car use dominates at 70%, with train at 10% and cycling at 4%. Average vehicle ownership per dwelling is 0.9, lower than the regional average.

In Preston, 40.6% of residents work from home, as recorded in the 2021 Census, which may be influenced by COVID-19 conditions. Daily service frequency averages 2,301 trips across all routes, equating to approximately 76 weekly trips per individual stop. The provided 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.

AreaSearch assessed mortality rates and chronic condition prevalence, finding common health conditions slightly more prevalent than average across both younger and older age cohorts. Approximately 55% of Preston's total population (~20,622 people) have private health cover, which is relatively high. The most common medical conditions are mental health issues (10.5%) and asthma (7.9%), while 69.8% of residents report being completely clear of medical ailments, compared to 72.6% across Greater Melbourne. Health outcomes among the working-age population are generally typical. Preston has 13.8% of residents aged 65 and over (5,202 people), lower than Greater Melbourne's 15.0%. National rankings for health indicators 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 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 predominant religion in Preston, accounting for 38.7% of the population. However, Islam is overrepresented in Preston compared to Greater Melbourne, comprising 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, Macedonian, and Italian ethnicities are overrepresented in Preston compared to the regional averages: Greek at 6.7% versus 2.7%, Macedonian at 2.1% versus 0.7%, and Italian at 9.5% versus 5.2%.

Preston's population is slightly younger than the national pattern

Preston has a median age of 37, matching Greater Melbourne and closely resembling Australia's figure of 38 years. The 25-34 age group is notably strong at 19.9%, higher than Greater Melbourne's percentage. Conversely, the 5-14 cohort is less prevalent in Preston at 8.8%. This concentration of individuals aged 25-34 is significantly above the national average of 14.6%. Between 2021 and present, the 35 to 44 age group has increased from 17.6% to 18.6% of Preston's population. Meanwhile, the 45 to 54 cohort has decreased from 14.0% to 13.1%. By 2041, demographic projections indicate substantial changes in Preston's age structure. Notably, the 45-54 group is expected to grow by 68%, adding 3,336 people to reach a total of 8,275 from its current figure of 4,938.