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 approximately 12,964 as of August 2025. This figure represents a growth of 208 people, equivalent to a 1.6% increase since the 2021 Census, which reported a population of 12,756. The change is inferred from the estimated resident population of 12,663 in June 2024 and an additional 155 validated new addresses since the Census date. This results in a population density ratio of 236 persons per square kilometer. Colac's growth rate exceeded that of the SA3 area (1.0%), positioning it as a growth leader in the region. Overseas migration was the primary driver of population gains during recent periods.

AreaSearch uses ABS/Geoscience Australia projections for each SA2 area, released in 2024 with a base year of 2022. For areas not covered by this data, AreaSearch employs 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 are applied across all areas for the years 2032 to 2041. By 2041, Colac is expected to increase its population by 876 persons, representing a total increase of 4.4% over the 17-year period, which is just below the median growth rate for locations outside capital cities.

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. Development approval data is produced by the ABS on a financial year basis. Between FY-21 and FY-25, around 339 homes were approved. By May 2023, 18 approvals have been granted in FY-26.

Despite population decline in recent years, housing supply has remained adequate relative to demand, creating a balanced market with good buyer choice. The average expected construction cost of new homes is $468,000. In the current financial year, $22.3 million in commercial approvals have been registered, suggesting balanced commercial development activity.

Compared to the Rest of Vic., Colac has similar development levels per person, supporting market stability in line with regional patterns. Recent construction comprises 83.0% standalone homes and 17.0% medium and high-density housing, maintaining the area's traditional low density character. With around 276 people per approval, Colac reflects a low density area. Future projections show Colac adding 572 residents by 2041. 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 25thth percentile nationally

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

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

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

Colac's workforce is balanced across white and blue-collar jobs. Manufacturing and industrial sectors are prominent, with an unemployment rate of 1.9% as of June 2025.

There are 6,127 employed residents, with a participation rate matching Rest of Vic.'s 57.4%. Key industries include manufacturing, healthcare & social assistance, and retail trade. Manufacturing's share is 2.7 times the regional average. Public administration & safety has limited presence at 4.2%, compared to 6.5% regionally.

Many residents commute elsewhere for work. Between June 2024 and June 2025, labour force decreased by 1.8% alongside a 1.3% employment decline, lowering unemployment by 0.6 percentage points. Meanwhile, Rest of Vic.'s employment fell by 0.9%, with unemployment rising by 0.4%. State-wide, VIC's employment grew by 1.08% year-on-year to Sep-25, reaching an unemployment rate of 4.7%. National forecasts suggest total employment growth of 6.6% over five years and 13.7% over ten years. Applying these projections to Colac's industry mix indicates local growth could be approximately 5.2% over five years and 11.9% over ten years.

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

AreaSearch's latest postcode level ATO data for financial year ended June 30, 2022 shows median income in Colac was $49,349 and average income was $56,367. This is lower than Rest of Vic.'s median income of $48,741 and average income of $60,693. Based on Wage Price Index growth of 10.11% from July 2022 to March 2025, estimated current incomes are approximately $54,338 (median) and $62,066 (average). Census data shows household, family and personal incomes in Colac fall between the 17th and 29th percentiles nationally. Incomes of $1,500 - 2,999 are reported by 29.9% of Colac's population (3,876 individuals), similar to metropolitan regions where this group represents 30.3%. Despite modest housing costs allowing for 86.7% income retention, 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

In Colac, houses made up 88.2% of dwellings and other dwellings comprised 11.8%, according to the latest Census data. 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, while the median weekly rent was $260 compared to Non-Metro Vic.'s $250. Nationally, Colac's mortgage repayments were significantly lower than the Australian average of $1,863, and 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 constitute 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 make up 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 matches 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 them - advanced diplomas (9.2%) and certificates (28.1%). Educational participation is high at 25.3%, including primary education (9.7%), secondary education (7.7%), and tertiary education (1.9%).

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

Colac has 74 active public transport stops operating, including a mix of train and bus services. These stops are served by 11 individual routes that collectively provide 376 weekly passenger trips. The city's transport accessibility is rated as good, with residents typically located 221 meters from the nearest transport stop.

Service frequency averages 53 trips per day across all routes, equating to 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

Colac faces significant health challenges, as indicated by data showing high prevalence of common health conditions across both younger and older age cohorts. Private health cover is low in Colac, with approximately 48% coverage (~6,222 people), compared to the national average of 55.3%.

The most prevalent medical conditions are arthritis (10.2%) and mental health issues (8.8%), while 63.4% of residents report being free from medical ailments, compared to 65.0% in the rest of Victoria. Colac has a lower proportion of seniors aged 65 and over at 23.4% (~3,029 people), compared to 24.6% in the rest of Victoria. Health outcomes among seniors present challenges broadly aligned 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, as of the 2016 Census, showed lower cultural diversity with 88.9% citizens, 89.5% born in Australia, and 92.3% speaking English only at home. Christianity was the predominant religion, comprising 50.1% of Colac's population, similar to the regional average of 50.0%. The top three ancestry groups were Australian (31.9%), English (30.9%), and Irish (11.3%).

Notably, Scottish ancestry was higher at 9.4% in Colac compared to the regional average of 10.0%, while Samoan was at 0.2% (regional: 0.1%) and Dutch at 1.3% (regional: 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 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% of the population. Conversely, the 65 to 74 cohort has declined from 12.0% to 11.3%. Population forecasts for 2041 indicate significant demographic changes in Colac. The 25 to 34 age group is projected to grow by 21%, adding 371 residents to reach 2,118. In contrast, population declines are projected for the 55 to 64 and 75 to 84 cohorts.