Colac

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

Colac's population was around 13,412 as of Nov 2025. This reflected an increase of 656 people since the 2021 Census, which reported a population of 12,756. The change was inferred from the estimated resident population of 12,665 in June 2024 and an additional 349 validated new addresses since the Census date. This resulted in a density ratio of 245 persons per square kilometer. Colac's growth of 5.1% since the 2021 census exceeded that of its SA3 area (2.0%) and SA4 region, making it a growth leader. Overseas migration was the primary driver of population gains during recent periods.

AreaSearch adopted ABS/Geoscience Australia projections for each SA2 area, released in 2024 with 2022 as the base year. For areas not covered by this data, AreaSearch used VIC State Government's Regional/LGA projections from 2023, adjusted using a method of weighted aggregation of population growth from LGA to SA2 levels. Growth rates by age group were applied across all areas for years 2032 to 2041. Future population dynamics anticipate an increase just below the median of locations outside capital cities, with Colac expected to increase by 876 persons to 2041 based on latest annual ERP population numbers, reflecting a total increase of 0.9% over 17 years.

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

Colac has recorded approximately 67 residential properties granted approval annually. Over the past five financial years, from FY21 to FY25, around 339 homes were approved, with an additional 53 approved so far in FY26. The average expected construction cost value of new dwellings is $286,000.

In terms of commercial development, $22.3 million in approvals have been registered this financial year. Colac maintains similar construction rates per person compared to the Rest of Vic., indicating a balanced market. Recent construction comprises 83% standalone homes and 17% medium and high-density housing, reflecting the area's traditional low density character focused on family homes.

With around 276 people per approval, Colac is considered a low density area. According to AreaSearch's latest quarterly estimate, Colac is expected to grow by 124 residents through to 2041. Current construction levels are anticipated to meet demand adequately, creating favorable conditions for buyers while potentially enabling growth that exceeds current forecasts.

Colac has emerging levels of nearby infrastructure activity, ranking in the 28thth percentile nationally

Changes to local infrastructure significantly impact an area's performance. AreaSearch has identified eight projects likely to affect the area. Notable ones include Lake Colac School, Colac West Primary School Upgrade, Clearwater Colac, and Pound Road, Colac. 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.

AreaSearch analysis indicates Colac maintains employment conditions that align with national benchmarks

Colac has a balanced workforce with white and blue collar jobs. Manufacturing and industrial sectors are prominent, with an unemployment rate of 2.5% as of September 2025.

There are 6,024 residents employed, with an unemployment rate 1.3% lower than Rest of Vic.'s rate of 3.8%. Workforce participation is equal to Rest of Vic.'s 57.4%. Key industries include manufacturing, health care & social assistance, and retail trade. Manufacturing has a particularly strong presence, with employment share 2.7 times the regional level.

Public administration & safety has limited presence at 4.2% compared to the regional rate of 6.5%. Many residents commute elsewhere for work based on Census data. Between September 2024 and September 2025, labour force decreased by 3.1% alongside a 3.2% employment decline, keeping unemployment relatively stable at 2.7%. This contrasts with Rest of Vic., where employment fell by 0.7%, labour force contracted by 0.6%, and unemployment rose marginally. State-level data to 25-Nov-25 shows VIC employment grew by 1.13% year-on-year, adding 41,950 jobs, with the state unemployment rate at 4.7%. Jobs and Skills Australia's national employment forecasts from May-25 suggest Colac's employment should increase by 5.2% over five years and 11.9% over ten years based on industry-specific projections.

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

AreaSearch's latest postcode level ATO data for financial year 2022 shows that median income in Colac SA2 is $49,349 and average income is $56,367. This is lower than Rest of Vic.'s figures: median income of $48,741 and average income of $60,693. Based on Wage Price Index growth of 12.16% since financial year 2022, estimated current incomes are approximately $55,350 (median) and $63,221 (average) as of September 2025. Census data reveals that household, family and personal incomes in Colac fall between the 17th and 28th percentiles nationally. Income brackets indicate that 29.9% of the population falls within the $1,500 - $2,999 income range, similar to metropolitan regions where this cohort represents 30.3%. Housing costs are modest with 86.7% of income retained, but total disposable income ranks at just the 20th percentile nationally.

Colac is characterized by a predominantly suburban housing profile, with a higher proportion of rental properties than the broader region

The dwelling structure in Colac, as per the latest Census, consisted of 88.2% houses and 11.8% other dwellings (semi-detached, apartments, 'other' dwellings). In comparison, Non-Metro Vic. had 93.2% houses and 6.8% other dwellings. Home ownership in Colac stood at 41.1%, with mortgaged dwellings at 32.3% and rented ones at 26.6%. The median monthly mortgage repayment was $1,300, aligning with Non-Metro Vic.'s average. The median weekly rent figure was $260 compared to Non-Metro Vic.'s $250. Nationally, Colac's mortgage repayments were significantly lower than the Australian average of $1,863, while rents were substantially below the national figure of $375.

Colac features high concentrations of lone person households and group households, with a fairly typical median household size

Family households account for 61.8% of all households, including 23.6% couples with children, 26.4% couples without children, and 10.5% single parent families. Non-family households constitute the remaining 38.2%, with lone person households at 34.3% and group households comprising 3.9%. The median household size is 2.3 people, which aligns with the Rest of Vic. average.

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

The area's university qualification rate is 13.6%, significantly lower than Victoria's average of 33.4%. Bachelor degrees are the most common at 9.9%, followed by postgraduate qualifications (2.0%) and graduate diplomas (1.7%). Vocational credentials are prevalent, with 37.3% of residents aged 15+ holding them, including advanced diplomas (9.2%) and certificates (28.1%). Educational participation is high, with 25.3% of residents currently enrolled in formal education, comprising 9.7% in primary, 7.7% in secondary, and 1.9% in tertiary education.

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

Colac has 74 active public transport stops, offering a mix of train and bus services. These stops are served by 11 routes that together facilitate 376 weekly passenger trips. Residents enjoy good transport accessibility, with an average distance of 221 meters to the nearest stop.

On average, there are 53 trips daily across all routes, resulting in approximately 5 weekly trips per individual stop.

Health performance in Colac is well below average with prevalence of common health conditions notable across both younger and older age cohorts

Health data indicates significant issues in Colac, with high prevalence of common health conditions across both younger and older age groups. Private health cover is low at approximately 48% (around 6,437 people), compared to the national average of 55.3%.

The most prevalent medical conditions are arthritis (10.2%) and mental health issues (8.8%). About 63.4% of residents report having no medical ailments, slightly lower than the Rest of Vic's 65.0%. Colac has 23.4% of residents aged 65 and over (3,134 people), which is lower than Rest of Vic's 24.6%. Senior health outcomes present some challenges, generally aligning with the overall population's health profile.

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

Colac's cultural diversity was found to be below average, with 88.9% of its population being citizens, 89.5% born in Australia, and 92.3% speaking English only at home. Christianity was the main religion in Colac, comprising 50.1% of people, which is similar to the 50.0% across Rest of Vic. The top three ancestry groups were Australian (31.9%), English (30.9%), and Irish (11.3%).

Notably, Scottish representation was higher at 9.4%, compared to 10.0% regionally, while Samoan was slightly higher at 0.2% versus 0.1%. Dutch representation was lower at 1.3%, compared to 1.6% regionally.

Colac's median age exceeds the national pattern

Colac's median age is 42 years, similar to Rest of Vic.'s average of 43, but considerably older than Australia's 38 years. The age profile shows that those aged 25-34 are particularly prominent at 13.5%, while the 65-74 group is smaller at 11.3% compared to Rest of Vic.. Between 2021 and present, the 35 to 44 age group has grown from 11.0% to 12.0%. Conversely, the 65 to 74 cohort has declined from 12.0% to 11.3%. Population forecasts for 2041 indicate substantial demographic changes in Colac. The 25 to 34 age group is projected to grow by 17%, adding 311 residents to reach 2,118. In contrast, population declines are projected for the 75 to 84 and 55 to 64 cohorts.