Daylesford

Population growth drivers in Daylesford are above average based on AreaSearch's ranking of recent, and medium to long-term trends

Daylesford's population, as of February 2026, is approximately 11,013. This figure represents an increase of 1,058 people since the 2021 Census, which reported a population of 9,955. The growth is inferred from the estimated resident population of 10,247 in June 2024 and an additional 261 validated new addresses since the Census date. This results in a population density ratio of 12.0 persons per square kilometer. Daylesford's population growth of 10.6% since the 2021 census exceeds that of the SA3 area (7.3%) and the Rest of Vic., indicating it is a growth leader in the region. Interstate migration contributed approximately 58.6% to overall 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 released in 2023, adjusted using a method of weighted aggregation from LGA to SA2 levels. Growth rates by age group are 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 Daylesford expected to gain 967 persons by 2041 based on the latest annual ERP population numbers, reflecting a total increase of 1.8% over the 17 years.

AreaSearch assessment of residential development activity positions Daylesford among the top 25% of areas assessed nationwide

Daylesford has recorded approximately 101 residential properties granted approval annually. Over the past five financial years, from FY21 to FY25508 homes were approved, with an additional 27 approved so far in FY26. On average, around 1.4 new residents per year have arrived for each new home over these five years, suggesting a balanced supply and demand dynamic that stabilizes market conditions.

The average expected construction cost of new dwellings is $494,000, indicating developers target the premium market segment with higher-end properties. In FY26, $27.4 million in commercial approvals have been registered, implying balanced commercial development activity in Daylesford compared to the rest of Victoria. Over the past five years, Daylesford has had 43.0% more development per person than the regional average, providing reasonable buyer options while sustaining existing property demand.

Recent construction comprises 88.0% standalone homes and 12.0% medium and high-density housing, maintaining the area's traditional low density character with a focus on family homes appealing to those seeking space. Daylesford reflects a developing area, with around 111 people per approval. Looking ahead, Daylesford is expected to grow by 201 residents through to 2041, according to the latest AreaSearch quarterly estimate. With current construction levels, housing supply should adequately meet demand, creating favorable conditions for buyers while potentially enabling growth that exceeds current forecasts.

Daylesford has strong levels of nearby infrastructure activity, ranking in the top 30% nationally

No changes can significantly influence a region's performance like alterations to its local infrastructure, major projects, and planning initiatives. AreaSearch has identified zero projects that are expected to impact this area. Notable projects comprise Western Renewables Link, Victorian Renewable Energy Zones, X'Trapolis 2.0 Trains, and Melbourne Metro Tunnel - Rail Systems Alliance, with the following list detailing those most likely to be relevant.

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

Daylesford has a well-educated workforce with diverse sector representation. The unemployment rate in September 2025 was 2.3%. Over the past year, there was an estimated employment growth of 1.8%.

As of that date, 5,111 residents were employed while the unemployment rate was 1.4% lower than Rest of Vic.'s rate of 3.8%. Workforce participation in Daylesford was somewhat below standard at 57.8%, compared to Rest of Vic.'s 61.4%. A high proportion, 34.4%, of residents worked from home according to Census responses, although Covid-19 lockdown impacts should be considered. The dominant employment sectors among residents include health care & social assistance, accommodation & food, and construction.

Daylesford demonstrates a notable concentration in accommodation & food, with employment levels at 1.7 times the regional average. Conversely, retail trade is under-represented, with only 7.5% of Daylesford's workforce compared to 9.9% in Rest of Vic.. The area appears to offer limited local employment opportunities, as indicated by the count of Census working population versus resident population. Between September 2024 and September 2025, employment levels increased by 1.8% and labour force increased by 1.7%, with unemployment remaining essentially unchanged. This contrasts with Rest of Vic., where employment contracted by 0.7%, the labour force fell by 0.6%, and unemployment rose marginally. Jobs and Skills Australia's national employment forecasts from May-25 suggest that national employment is forecast to expand by 6.6% over five years and 13.7% over ten years. Applying these projections to Daylesford's employment mix suggests local employment should increase by 6.4% over five years and 13.3% over ten years, although this is a simple weighting extrapolation for illustrative purposes and does not take into account localised population projections.

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

The Daylesford SA2 had a median taxpayer income of $45,135 and an average income of $65,429 in the financial year 2023, according to postcode level ATO data aggregated by AreaSearch. This is slightly below the national average, contrasting with Rest of Vic.'s median income of $50,954 and average income of $62,728. Based on Wage Price Index growth of 8.25% since financial year 2023, current estimates would be approximately $48,859 (median) and $70,827 (average) as of September 2025. Census 2021 income data shows household, family, and personal incomes all rank modestly in Daylesford, between the 23rd and 28th percentiles. The earnings profile indicates that the largest segment comprises 27.7% earning $1,500 - $2,999 weekly (3,050 residents), aligning with regional levels where this cohort likewise represents 30.3%. While housing costs are modest with 87.0% of income retained, the total disposable income ranks at just the 28th percentile nationally and the area's SEIFA income ranking places it in the 6th decile.

Daylesford is characterized by a predominantly suburban housing profile, with above-average rates of outright home ownership

In Daylesford, as per the latest Census, 95.3% of dwellings were houses with the remaining 4.7% being semi-detached, apartments, or other types. This compares to Non-Metro Vic.'s figures of 90.1% houses and 9.9% other dwellings. Home ownership in Daylesford stood at 51.2%, with mortgaged dwellings at 33.6% and rented ones at 15.3%. The median monthly mortgage repayment was $1,600, higher than Non-Metro Vic.'s average of $1,430. The median weekly rent in Daylesford was $330, compared to Non-Metro Vic.'s $285. Nationally, Daylesford's mortgage repayments were lower at $1,600 versus Australia's average of $1,863, and rents were also lower at $330 compared to the national figure of $375.

Daylesford features high concentrations of lone person households, with a lower-than-average median household size

Family households account for 64.0% of all households, including 19.6% couples with children, 35.9% couples without children, and 7.9% single parent families. Non-family households constitute the remaining 36.0%, with lone person households at 33.0% and group households comprising 3.1%. The median household size is 2.1 people, which is smaller than the Rest of Vic. average of 2.4.

The educational profile of Daylesford exceeds national averages, with above-average qualification levels and academic performance metrics

Daylesford's educational attainment exceeds broader standards. Among residents aged 15+, 34.6% have university qualifications, compared to 21.7% in the rest of Victoria and 24.6% in the SA4 region. This educational advantage positions Daylesford well for knowledge-based opportunities. Bachelor degrees are most prevalent at 21.2%, followed by postgraduate qualifications (8.4%) and graduate diplomas (5.0%). Vocational credentials are also prominent, with 34.4% of residents aged 15+ holding them – advanced diplomas account for 13.5% and certificates for 20.9%.

A significant 24.9% of the population is actively pursuing formal education, including 8.5% in primary education, 7.9% in secondary education, and 3.4% pursuing tertiary education.

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

Daylesford has 29 active public transport stops. These are served by 4 routes offering a total of 60 weekly passenger trips. Transport access is limited with residents typically living 1354 meters from the nearest stop. Most commuters travel outward and cars are the main mode (88%), followed by walking (8%). Average vehicle ownership per dwelling is 1.5. According to the 2021 Census, 34.4% of residents work from home.

Service frequency averages 8 trips daily across all routes, resulting in approximately 2 weekly trips per stop.

Daylesford's residents are healthier than average in comparison to broader Australia with a fairly standard level of common health conditions seen across both young and old age cohorts

Health data for Daylesford indicates positive outcomes, aligning with national benchmarks for mortality rates and health conditions.

Common health conditions are seen across both young and old age cohorts at a standard level. Private health cover stands at approximately 52% of the total population (~5,715 people), slightly lower than the average SA2 area. The most common medical conditions are arthritis (10.1%) and mental health issues (9.2%), while 62.3% of residents report being completely clear of medical ailments, compared to 63.4% across Rest of Vic.. The working-age population faces notable health challenges with elevated chronic condition rates. Daylesford has 29.6% of residents aged 65 and over (3,255 people), higher than the 23.9% in Rest of Vic.. Health outcomes among seniors are strong, ranking even higher than the general population nationally.

Daylesford ranks below the Australian average when compared to other local markets across a number of language and cultural background related metrics

Daylesford's population, as per the census, showed low cultural diversity: 87.4% were citizens, 82.1% were born in Australia, and 93.3% spoke English only at home. Christianity was the dominant religion, accounting for 36.0%. Notably, Judaism was slightly overrepresented at 0.2%, compared to 0.1% regionally.

The top three ancestry groups were English (30.5%), Australian (23.1%), and Irish (12.7%). Scottish ancestry was notably higher than regional averages at 10.7%. Dutch ancestry was similarly slightly overrepresented at 1.8%, as was Hungarian at 0.4%.

Daylesford ranks among the oldest 10% of areas nationwide

Daylesford's median age is 53, which is considerably higher than Rest of Vic.'s figure of 43 and substantially exceeds the national norm of 38. Compared to Rest of Vic., Daylesford has a higher concentration of residents aged 55-64 (19.1%) but fewer residents aged 25-34 (7.2%). This 55-64 concentration is well above the national figure of 11.2%. Between the 2021 Census and the present, the 75 to 84 age group has grown from 7.8% to 9.4%, while the 15 to 24 cohort increased from 6.6% to 8.2%. Conversely, the 45 to 54 cohort has declined from 15.1% to 13.6%, and the 5 to 14 group dropped from 9.5% to 8.1%. Looking ahead to 2041, demographic projections reveal significant shifts in Daylesford's age structure. The 25 to 34 group is expected to grow by 28% (225 people), reaching 1,024 from 798. Meanwhile, the 65 to 74 and 5 to 14 cohorts are projected to experience population declines.