Colac
Statistical Area - sa2

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 November 2025. This reflected an increase of 656 people since the 2021 Census, which reported a population of 12,756. The change was inferred from ABS estimated resident population of 12,665 in June 2024 and additional validated new addresses since the Census date. This resulted in a density ratio of 245 persons per square kilometer. Colac's growth exceeded SA3 area (2.0%) and SA4 region, marking it as a growth leader. Overseas migration primarily drove population growth.

AreaSearch adopted ABS/Geoscience Australia projections for each SA2 area released in 2024 with base year 2022. For areas not covered, VIC State Government's Regional/LGA projections were used, adjusted employing weighted aggregation method to SA2 levels. Growth rates by age group were applied across all areas from 2032 to 2041. Future population dynamics anticipated a median increase outside capital cities, with Colac expected to increase by 876 persons to 2041 based on latest numbers, representing an increase of 0.9% 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 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 48 approved in FY26 so far. The average expected construction cost of new dwellings is $286,000.

In terms of commercial development, Colac has registered approximately $22.3 million in approvals this financial year, indicating moderate levels of activity. When compared to the Rest of Vic., Colac maintains similar construction rates per person, reflecting a balanced market consistent with the broader area. However, recent construction activity has eased slightly.

The majority of recent constructions, 83%, are standalone homes, with the remaining 17% being medium and high-density housing. This reflects Colac's traditional low density character, appealing to those seeking space for families. With around 276 people per approval, Colac is considered a low density area. Looking ahead, Colac is projected to grow by approximately 124 residents by the year 2041. Given current construction levels, housing supply should adequately meet demand, creating favorable conditions for buyers and potentially enabling growth that exceeds current forecasts.

Colac has emerging levels of nearby infrastructure activity, ranking in the 25thth percentile nationally

Changes to local infrastructure significantly impact an area's performance. AreaSearch has identified eight projects likely influencing this region. Notable ones are Lake Colac School, Colac West Primary School Upgrade, Lakeside Colac, and Clearwater Colac. The following details projects expected to be most relevant.

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

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AreaSearch analysis places Colac well above average for employment performance across multiple indicators

Colac has a balanced workforce with white and blue collar jobs, prominently featuring manufacturing and industrial sectors. Its unemployment rate is 1.9%, as of June 2025.

In this month, 6,127 residents are employed while the unemployment rate is below Rest of Vic.'s rate of 3.8%. Workforce participation in Colac is on par with Rest of Vic.'s 57.4%. Key industries employing residents include manufacturing, health care & social assistance, and retail trade. Manufacturing particularly stands out with an employment share 2.7 times the regional level.

Conversely, public administration & safety has limited presence at 4.2%, compared to 6.5% regionally. Many residents may commute elsewhere for work based on Census data comparisons. Between June 2024 and June 2025, Colac's labour force decreased by 1.8%, with employment declining by 1.3%. This resulted in a drop of 0.6 percentage points in the unemployment rate. In contrast, Rest of Vic.'s employment fell by 0.9% during this period, while its labour force contracted by 0.4%, leading to an increase of 0.4 percentage points in unemployment. National employment forecasts from Jobs and Skills Australia (May 2025) project a 6.6% expansion over five years and 13.7% over ten years. Applying these projections to Colac's employment mix suggests local growth of approximately 5.2% over five years and 11.9% over ten years, although these are simple extrapolations for illustrative purposes only.

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

AreaSearch's data for financial year 2022 shows median income in Colac was $49,349 and average income was $56,367. This is below the national average. In Rest of Vic., median income was $48,741 and average income was $60,693. Based on Wage Price Index growth of 12.16% since financial year 2022, current estimates for Colac would be approximately $55,350 (median) and $63,221 (average) as of September 2025. Census data reveals incomes in Colac fall between the 17th and 29th percentiles nationally. Income brackets show 29.9% of Colac's population earns between $1,500 - 2,999 annually, similar to metropolitan regions at 30.3%. Housing costs are modest with 86.7% of income retained, but total disposable income ranks at the 20th percentile nationally.

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

Colac's dwelling structure, as per the latest Census, consisted of 88.2% houses and 11.8% other dwellings (semi-detached, apartments, 'other' dwellings). This compares to Non-Metro Vic.'s 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, while the median weekly rent was $260, compared to Non-Metro Vic.'s $1,300 and $250 respectively. Nationally, Colac's mortgage repayments were significantly lower than the Australian average of $1,863, with rents 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% composed of couples with children, 26.4% consisting of couples without children, and 10.5% being 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 is 2.3 people, which aligns with the average for the Rest of Vic.

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 such qualifications - advanced diplomas at 9.2% and certificates at 28.1%. Educational participation is high, with 25.3% of residents currently enrolled in formal education, including 9.7% in primary, 7.7% in secondary, and 1.9% in tertiary education.

Eleven schools serve 2,611 students, with typical Australian school conditions (ICSEA: 971) and balanced educational opportunities. The educational mix includes six primary, three secondary, and two K-12 schools. School capacity exceeds residential needs, with 20.1 places per 100 residents compared to the regional average of 14.5, indicating that the area serves as an educational center for the broader region. Note: where schools show 'n/a' for enrolments, please refer to the parent campus.

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

The analysis of public transport in Colac shows that there are currently 74 active transport stops operating within the area. These stops offer a mix of train and bus services. There are 11 individual routes servicing these stops, which collectively provide 376 weekly passenger trips.

The report rates transport accessibility as good, with residents typically located approximately 221 meters from their nearest transport stop. On average, service frequency across all routes is around 53 trips per day, equating to roughly 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

Colac faces significant health challenges, as indicated by data showing high prevalence of common conditions across both younger and older age groups. Private health cover is low, at approximately 48% of the total population (~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%). Conversely, 63.4% of residents report no medical ailments, slightly lower than the Rest of Vic.'s 65.0%. Colac has a lower proportion of seniors aged 65 and over, at 23.4% (3,134 people), compared to Rest of Vic.'s 24.6%. Health outcomes among seniors are broadly in line with the general 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 Australian citizens, born in Australia on 89.5%, and speaking English only at home on 92.3%. Christianity was the main religion in Colac, comprising 50.1% of people, which is similar to the 50.0% across Rest of Vic., as reported on [date]. In terms of ancestry, the top three represented groups were Australian (31.9%), English (30.9%), and Irish (11.3%).

Notably, Scottish ancestry was overrepresented in Colac at 9.4%, compared to 10.0% regionally. Samoan ancestry was also higher than regional averages, at 0.2% versus 0.1%. Dutch ancestry was slightly lower at 1.3%, compared to the regional average of 1.6%.

Colac hosts an older demographic, ranking in the top quartile nationwide

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 a prominent group of 25-34 year-olds at 13.5%, while the 65-74 group is smaller at 11.3% compared to Rest of Vic.. Between 2021 and present, the 35-44 age group has grown from 11.0% to 12.0%. Conversely, the 65-74 cohort has declined from 12.0% to 11.3%. Population forecasts for 2041 indicate significant demographic changes in Colac. The 25-34 cohort is projected to grow by 17%, adding 311 residents to reach 2,118. Meanwhile, population declines are projected for the 75-84 and 55-64 cohorts.