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 May 2026, is approximately 12,561. This figure represents a decrease of 195 people since the 2021 Census, which recorded a population of 12,756. The change is inferred from ABS estimated resident populations and validated new addresses. Colac's population density is around 229 persons per square kilometer. Between the 2021 Census and June 2025, overseas migration was the primary driver of population growth in Colac. 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 years 2032 to 2041. By 2041, Colac is expected to increase by approximately 853 persons, reflecting a growth rate just below the median of locations outside capital cities over the 16-year period.

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

Colac granted around 67 residential approvals annually. Between FY21-FY25339 homes were approved, with 93 so far in FY26. The population has fallen during this period, suggesting new supply has kept pace with demand.

Average dwelling value is $286,000. In FY26, commercial approvals totalled $22.3 million, indicating moderate commercial development. Colac's construction rates per person are similar to Rest of Vic., maintaining market balance.

Recent activity comprises 83% standalone homes and 17% medium-high density housing, reflecting the area's traditional low-density character appealing to families seeking space. With around 276 people per approval, Colac is a low-density area. By 2041, AreaSearch estimates an increase of 850 residents. Current construction levels should meet demand, favouring buyers and potentially exceeding current growth forecasts.

Colac has emerging levels of nearby infrastructure activity, ranking in the 38thth percentile nationally

Changes to local infrastructure significantly influence an area's performance. AreaSearch has identified eight projects likely to impact the area. Key projects 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 assessment positions Colac ahead of most Australian regions for employment performance

Colac has a balanced workforce with white and blue collar employment. Manufacturing and industrial sectors are strongly represented, with an unemployment rate of 2.4%. As of December 2025, 5905 residents are employed, while the unemployment rate is 1.3% lower than Regional Vic.'s rate of 3.7%.

Workforce participation in Colac is somewhat below standard at 58.1%, compared to Regional Vic.'s 61.0%. According to Census responses, a low 7.0% of residents work from home. The key industries of employment among residents are manufacturing, health care & social assistance, and retail trade. Manufacturing shows particularly strong specialization with an employment share 2.7 times the regional level.

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 December 2024 and December 2025, the labour force decreased by 6.5% alongside a 6.6% employment decline in Colac, keeping the unemployment rate relatively stable. In comparison, Regional Vic.'s employment fell by 0.6%, labour force contracted by 0.7%, and unemployment fell by 0.1 percentage points during this period. Jobs and Skills Australia's national employment forecasts from May-25 suggest that national employment should expand by 6.6% over five years and 13.7% over ten years. Applying these projections to Colac's employment mix, local employment is estimated to increase by 5.2% over five years and 11.9% over ten years, though these are simple weighted extrapolations for illustrative purposes only.

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 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 9.62% since financial year 2023, current estimates would be approximately $55,570 (median) and $65,832 (average) as of March 2026. 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 (3,755 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

Colac's dwelling structures, as per the latest Census, comprised 88.2% houses and 11.8% other dwellings (semi-detached, apartments, 'other' dwellings), compared to Regional Vic.'s 90.1% houses and 9.9% other dwellings. Home ownership in Colac was at 41.1%, similar to Regional Vic., with mortgaged dwellings at 32.3% and rented dwellings at 26.6%. The median monthly mortgage repayment was $1,300, below the Regional Vic. average of $1,430. Median weekly rent in Colac was $260, compared to Regional Vic.'s $285. Nationally, Colac's mortgage repayments were 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 lower-than-average 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 account for 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 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 has university qualification rates of 13.6%, significantly lower than the Victorian average of 33.4%. This disparity presents both a challenge and an opportunity for targeted educational initiatives. 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 comprise 9.2% and certificates make up 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, serving a mix of train services. These are covered by seven routes, offering a total of 310 weekly passenger trips. Transport accessibility is considered good, with residents typically living 221 meters from the nearest stop. As a mainly residential area, most commutes are outward-bound. Cars are the primary mode of transport at 92%, with 6% walking. On average, there are 1.3 vehicles per dwelling, below the regional average.

According to the 2021 Census, only 7.0% of residents work from home, which may reflect COVID-19 conditions. Service frequency averages 44 trips per day across all routes, equating to about four 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 somewhat prevalent across both younger and older age cohorts.

The rate of private health cover is very low at approximately 49% of the total population (~6,142 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 Regional Vic average of 63.4%. Working-age residents show an above-average prevalence of chronic health conditions. The area has 23.7% of residents aged 65 and over (2,975 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 citizens, 89.5% born in Australia, and 92.3% speaking English only at home. The predominant religion in Colac is Christianity, accounting for 50.1% of the population, compared to 47.3% across Regional Vic. In terms of ancestry, the top three groups are Australian (31.9%), English (30.9%), and Irish (11.3%).

Notably, Scottish ancestry is overrepresented in Colac at 9.4%, compared to 8.8% regionally, while Samoan is at 0.2% versus 0.1%, and Dutch is at 1.3% versus 1.7%.

Colac's median age exceeds the national pattern

Colac's median age is 42 years, similar to Regional 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 13.3%, while the 65-74 group is comparatively smaller at 11.3% than in Regional Vic.. Between 2021 and present, the 35 to 44 age group has grown from 11.0% to 11.9% of the population. Conversely, the 45 to 54 cohort has declined from 11.7% to 10.9%. Population forecasts for 2041 indicate substantial demographic changes for Colac. The 25 to 34 cohort is projected to grow by 21%, adding 350 residents to reach 2,017. In contrast, population declines are projected for the 75 to 84 and 55 to 64 cohorts.