Colac

An assessment of population growth drivers in Colac reveals an overall ranking slightly below national averages considering recent, and medium term trends

Based on AreaSearch's analysis, Colac's population is around 13,420 as of Feb 2026. This reflects an increase of 664 people (5.2%) since the 2021 Census, which reported a population of 12,756 people. The change is inferred from the estimated resident population of 12,661 from the ABS as of June 2024 and an additional 364 validated new addresses since the Census date. This population level equates to a density ratio of 245 persons per square kilometer, providing significant space per person and potential room for further development. Colac's 5.2% growth since the 2021 census exceeded the SA3 area (3.1%) and the SA4 region, marking it as a growth leader in the region. Population growth for the area was primarily driven by overseas migration, which was essentially the sole driver of 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. Regarding demographic trends, a population increase just below the median of Australia's non-metropolitan areas is expected, with the area expected to grow by 876 persons to 2041 based on the latest annual ERP population numbers, reflecting a gain of 0.9% in total over the 17 years.

Residential development activity is lower than average in Colac according to AreaSearch's national comparison of local real estate markets

Colac has averaged around 67 new dwelling approvals each year, totalling 339 homes over the past 5 financial years. So far in FY-26, 58 approvals have been recorded. With population declining over recent years, housing supply has remained adequate relative to demand, creating a well-balanced market with good buyer choice, while new homes are being built at an average value of $286,000. Additionally, $22.3 million in commercial approvals have been registered this financial year, suggesting balanced commercial development activity.

Compared to the rest of Victoria, Colac has similar development levels (per person), supporting market stability in line with regional patterns, though development activity has moderated in recent periods. Recent construction comprises 83.0% standalone homes and 17.0% medium and high-density housing, maintaining the area's traditional low density character with a focus on family homes appealing to those seeking space. At around 276 people per approval, Colac reflects a low density area.

Future projections show Colac adding 116 residents by 2041 (from the latest AreaSearch quarterly estimate). Based on current development patterns, new housing supply should readily meet demand, offering good conditions for buyers and potentially facilitating population growth beyond current projections.

Colac has emerging levels of nearby infrastructure activity, ranking in the 37thth percentile nationally

Nothing can influence an area's performance as much as changes to local infrastructure, major projects, and planning initiatives. In total 8 projects have been identified by AreaSearch that are likely to have an impact on the area. Key projects include Lake Colac School, Colac West Primary School Upgrade, Clearwater Colac, and Pound Road, Colac, with the list below detailing those likely to be of most relevance.

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.

AreaSearch assessment positions Colac ahead of most Australian regions for employment performance

Colac has a balanced workforce spanning white and blue collar employment, with manufacturing and industrial sectors strongly represented, and an unemployment rate of just 2.4%. As of December 2025, 5,905 residents are in work while the unemployment rate is 1.3% below Regional Vic.'s rate of 3.7%, and workforce participation is somewhat below standard (57.6% compared to Regional Vic.'s 61.5%). Based on Census responses, a low 7.0% of residents were found to work from home, though Covid-19 lockdown impacts should be considered.

The key industries of employment among residents are manufacturing, health care & social assistance, and retail trade. The area shows particularly strong specialization in manufacturing, with an employment share of 2.7 times the regional level. Meanwhile, public administration & safety has a limited presence with 4.2% employment compared to 6.5% regionally. While local employment opportunities exist in the area, it appears many residents commute elsewhere for work, based on the count of Census working population to local population.

Based on AreaSearch analysis of SALM and ABS data, during the year to December 2025, the labour force decreased by 6.5% alongside a 6.6% employment decline, keeping the unemployment rate relatively stable. This compares to Regional Vic., where employment fell by 0.6%, labour force contracted by 0.7%, and unemployment fell 0.1 percentage points. Jobs and Skills Australia's national employment forecasts from May-25 can offer further insight into potential future demand within Colac. These projections, covering five and ten-year periods, have been mapped against the local employment profile to estimate growth patterns. While national employment is forecast to expand by 6.6% over five years and 13.7% over ten years, growth rates differ significantly between industry sectors. Applying these industry-specific projections to Colac's employment mix suggests local employment should increase by 5.2% over five years and 11.9% over ten years (please note this is a simple weighting extrapolation for illustrative purposes and does not take into account localised population projections).

Income figures position the area below 75% of locations analysed nationally by AreaSearch

AreaSearch's latest postcode level ATO data for FY-23 reveals that income in the Colac SA2 is below the national average, with the median assessed at $50,693 while the average income stands at $60,055. This contrasts with Regional Vic.'s figures of a median income of $50,954 and an average income of $62,728. Based on Wage Price Index growth of 8.25% since FY-23, current estimates would be approximately $54,875 (median) and $65,010 (average) as of September 2025. Census data reveals household, family and personal incomes in Colac all fall between the 17th and 28th percentiles nationally. Income brackets indicate 29.9% of the population (4,012 individuals) fall within the $1,500 - 2,999 income range, aligning with the metropolitan region where this cohort likewise represents 30.3%. While housing costs are modest with 86.7% of income retained, the total disposable income ranks at just the 20th percentile nationally.

Colac is characterized by a predominantly suburban housing profile, with above-average rates of outright home ownership

Dwelling structure within Colac, as evaluated at the latest Census, comprised 88.2% houses and 11.8% other dwellings (semi-detached, apartments, 'other' dwellings), in comparison to Regional Vic.'s 90.1% houses and 9.9% other dwellings. Meanwhile, the level of home ownership within Colac was in line with that of Regional Vic., at 41.1%, with the remainder of dwellings either mortgaged (32.3%) or rented (26.6%). The median monthly mortgage repayment in the area was below the Regional Vic. average at $1,300, while the median weekly rent figure was recorded at $260, compared to Regional Vic.'s $1,430 and $285. Nationally, Colac's mortgage repayments are significantly lower than the Australian average of $1,863, while rents are substantially below the national figure of $375.

Colac features high concentrations of lone person households and group households, with a lower-than-average median household size

Family households dominate at 61.8% of all households, comprising 23.6% couples with children, 26.4% couples without children, and 10.5% single parent families. Non-family households make up the remaining 38.2%, with lone person households at 34.3% and group households comprising 3.9% of the total. The median household size of 2.3 people is smaller than the Regional Vic. average of 2.4.

Colac faces educational challenges, with performance metrics placing it in the bottom quartile of areas assessed nationally

The area faces educational challenges, with university qualification rates (13.6%) substantially below the VIC average of 33.4%. This represents both a challenge and an opportunity for targeted educational initiatives. Bachelor degrees lead at 9.9%, followed by postgraduate qualifications (2.0%) and graduate diplomas (1.7%). Trade and technical skills feature prominently, with 37.3% of residents aged 15+ holding vocational credentials, including advanced diplomas (9.2%) and certificates (28.1%).

Educational participation is notably high, with 25.3% of residents currently enrolled in formal education. This includes 9.7% in primary education, 7.7% in secondary education, and 1.9% pursuing tertiary education.

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

Public transport analysis reveals 74 active transport stops operating within Colac, comprising a mix of train services. These stops are serviced by 7 individual routes, collectively providing 310 weekly passenger trips. Transport accessibility is rated as good, with residents typically located 221 meters from the nearest transport stop. As a primarily residential area, most residents commute outward; the car remains the dominant mode at 92%, with 6% walking. Vehicle ownership averages 1.3 per dwelling, which is below the regional average. A relatively low 7.0% of residents work from home (2021 Census; may reflect COVID-19 conditions).

Service frequency averages 44 trips per day across all routes, equating to approximately 4 weekly trips per individual stop.

Health performance in Colac is lower than average with common health conditions somewhat prevalent across both younger and older age cohorts

Colac faces significant health challenges, based on AreaSearch's assessment of mortality rates and chronic condition prevalence. Common health conditions are somewhat prevalent across both younger and older age cohorts, and the rate of private health cover is very low at approximately 49% of the total population (~6,562 people). The national average is 55.7%.

The most common medical conditions in the area are arthritis and mental health issues, impacting 10.2 and 8.8% of residents, respectively, while 63.4% declared themselves as completely clear of medical ailments compared to 63.4% across Regional Vic. Working-age residents show an above average prevalence of chronic health conditions. The area has 23.0% of residents aged 65 and over (3,082 people). Health outcomes among seniors present some challenges, with national rankings broadly in line with the general population.

Colac is considerably less culturally diverse than average when assessed alongside AreaSearch's national rankings for language and cultural background related metrics

Colac was found to be below average in terms of cultural diversity, with 88.9% of its population being citizens, 89.5% born in Australia, and 92.3% speaking English only at home. The main religion in Colac is Christianity, which makes up 50.1% of the population, compared to 47.3% across Regional Vic..

In terms of ancestry (country of birth of parents), the top three represented groups in Colac are Australian, comprising 31.9% of the population, English, comprising 30.9% of the population, and Irish, comprising 11.3% of the population. Additionally, there are notable divergences in the representation of certain other ethnic groups: Scottish is notably overrepresented at 9.4% of Colac (vs 8.8% regionally), Samoan at 0.2% (vs 0.1%) and Dutch at 1.3% (vs 1.7%).

Colac's median age exceeds the national pattern

At 42 years, Colac's median age is similar to the Regional Vic. average of 43 while considerably older than Australia's 38 years. The age profile shows 25 - 34 year-olds are particularly prominent (13.8%), while the 65 - 74 group is comparatively smaller (11.1%) than in Regional Vic.. In the period since 2021, the 35 to 44 age group has grown from 11.0% to 12.3% of the population. Conversely, the 65 to 74 cohort has declined from 12.0% to 11.1%. Population forecasts for 2041 indicate substantial demographic changes for Colac. The 25 to 34 cohort shows the strongest projected growth at 14%, adding 263 residents to reach 2,118. In contrast, population declines are projected for the 75 to 84 and 5 to 14 cohorts.