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, as of February 2026, is approximately 13,420. This figure represents an increase of 664 people since the 2021 Census, which recorded a population of 12,756. The growth is inferred from the estimated resident population of 12,661 in June 2024 and the addition of 364 validated new addresses post-Census. This results in a population density of 245 persons per square kilometer. Colac's 5.2% population growth since the 2021 Census exceeds both its SA3 area (3.1%) and SA4 region, positioning it as a regional growth leader. Overseas migration was the primary driver of this growth.

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 weighted aggregation methods to SA2 levels. Growth rates by age group are applied across all areas for the years 2032 to 2041. Looking ahead, demographic trends suggest a population increase just below Australia's non-metropolitan median by 2041, with Colac expected to grow by 876 persons, reflecting an annual growth rate of approximately 0.9%.

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

Colac has averaged approximately 67 new dwelling approvals annually over the past five financial years, totalling 339 homes. As of FY2026 so far, 55 approvals have been recorded. The population decline in recent years has not negatively impacted housing supply relative to demand, maintaining a balanced market with varied buyer options. New homes are being constructed at an average cost of $286,000.

This year, $22.3 million worth of commercial approvals have been registered, indicating balanced commercial development activity. Compared to the rest of Victoria, Colac's development levels per capita are similar, supporting market stability in line with regional trends. However, recent periods have seen a moderation in development activity.

Recent construction consists of 83% standalone homes and 17% medium to high-density housing, preserving the area's traditional low-density character focused on family homes. With approximately 276 people per approval, Colac reflects a low-density area. According to AreaSearch's latest quarterly estimate, Colac is projected to add 116 residents by 2041. Based on current development patterns, new housing supply should meet demand, offering favourable 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

Changes to local infrastructure significantly influence an area's performance. AreaSearch has identified eight projects likely impacting 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 employment, prominently featuring manufacturing and industrial sectors. As of September 2025, the unemployment rate is 2.5%. In this month, 6,024 residents are employed while the unemployment rate is 1.3% lower than Rest of Vic.'s rate of 3.8%.

Workforce participation stands at 58.8%, slightly below Rest of Vic.'s 61.4%. According to Census responses, a low 7.0% of residents work from home. Key industries include manufacturing, health care & social assistance, and retail trade. Manufacturing is particularly strong with an employment share 2.7 times the regional level.

Meanwhile, public administration & safety has limited presence at 4.2%, compared to 6.5% regionally. Many residents commute elsewhere for work based on Census data. Between September 2024 and September 2025, the labour force decreased by 3.1% alongside a 3.2% employment decline, keeping unemployment relatively stable at 2.5%. In comparison, Rest of Vic.'s employment fell by 0.7%, labour force contracted by 0.6%, and unemployment rose marginally. Jobs and Skills Australia's national employment forecasts from May-25 suggest potential future demand within Colac. Over five years, national employment is forecast to expand by 6.6% and over ten years by 13.7%. Applying these projections to Colac's employment mix suggests local employment should increase by 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 2023 shows that income in Colac SA2 is below the national average. The median income is $50,693 and the average income is $60,055. This contrasts with Rest of Vic.'s figures where the median income is $50,954 and the average income is $62,728. Based on Wage Price Index growth of 8.25% since financial year 2023, estimated incomes as of September 2025 would be approximately $54,875 (median) and $65,010 (average). Census data reveals that household, family, and personal incomes in Colac all fall between the 17th and 28th percentiles nationally. Income brackets indicate that 29.9% of the population (4,012 individuals) falls within the $1,500 - $2,999 income range, aligning with metropolitan regions where this cohort also represents approximately 30%. 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 above-average rates of outright home ownership

In Colac, as per the latest Census evaluation, 88.2% of dwellings were houses with the remaining 11.8% comprising semi-detached homes, apartments, and other dwelling types. This compares to Non-Metro Vic.'s figures of 90.1% houses and 9.9% other dwellings. Home ownership in Colac stood at 41.1%, similar to Non-Metro Vic., with mortgaged properties at 32.3% and rented dwellings at 26.6%. The median monthly mortgage repayment was $1,300, lower than Non-Metro Vic.'s average of $1,430. Weekly rent in Colac was recorded at $260, compared to Non-Metro Vic.'s $285. 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 lower-than-average median household size

Family households account for 61.8 percent of all households, including 23.6 percent couples with children, 26.4 percent couples without children, and 10.5 percent single parent families. Non-family households constitute the remaining 38.2 percent, with lone person households at 34.3 percent and group households comprising 3.9 percent of the total. The median household size is 2.3 people, which is smaller than the Rest of Vic. average of 2.4.

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 at 2.0% and graduate diplomas at 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.

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 services. These are covered by 7 routes, providing a total of 310 weekly passenger trips. Residents' accessibility to these stops is rated as good, with an average distance of 221 meters to the nearest stop. The area is predominantly residential, with most residents commuting outwards. Car remains the primary mode of transport at 92%, while walking accounts for 6%. Vehicle ownership averages 1.3 per dwelling, lower than the regional average.

According to the 2021 Census, only 7% of residents work from home, which may be due to COVID-19 conditions. The service frequency averages 44 trips per day across all routes, translating 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. Mortality rates and chronic condition prevalence are high, with common health conditions prevalent across both younger and older age cohorts.

Private health cover is very low at approximately 49% of the total population (~6,562 people), compared to the national average of 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. Conversely, 63.4% of residents declare themselves completely clear of medical ailments, similar to the figure across Rest of Vic (63.4%). Working-age residents show 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's cultural diversity was found to be below average, with 88.9% of its population being Australian citizens, 89.5% born in Australia, and 92.3% speaking English only at home. Christianity is the predominant religion in Colac, comprising 50.1% of the population, compared to 47.3% across the rest of Victoria. The top three ancestry groups in Colac are Australian (31.9%), English (30.9%), and Irish (11.3%).

Notably, Scottish ancestry is overrepresented at 9.4%, compared to 8.8% regionally, while Samoan ancestry stands at 0.2% versus 0.1%. Dutch ancestry is also present but slightly underrepresented at 1.3%, compared to the regional figure of 1.7%.

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 older than Australia's 38 years. The age profile shows that those aged 25-34 are prominent at 13.8%, while the 65-74 group is smaller at 11.1% compared to Rest of Vic.. Between 2021 and now, the 35-44 age group has grown from 11.0% to 12.3%. Conversely, the 65-74 cohort has declined from 12.0% to 11.1%. Population forecasts for 2041 indicate significant demographic changes in Colac. The 25-34 age group is projected to grow by 14%, adding 263 residents to reach 2,118. Meanwhile, population declines are projected for the 75-84 and 5-14 cohorts.