Diggers Rest

Diggers Rest lies within the top 10% of areas nationally in terms of population growth performance according to AreaSearch analysis of short and medium-term trends

Based on AreaSearch's analysis, Diggers Rest's population is around 7,250 as of Feb 2026. This reflects an increase of 2,013 people (38.4%) since the 2021 Census, which reported a population of 5,237 people. The change is inferred from the estimated resident population of 6,967 from the ABS as of June 2024 and an additional 692 validated new addresses since the Census date. This population level equates to a density ratio of 139 persons per square kilometer, providing significant space per person and potential room for further development. Diggers Rest's 38.4% growth since the 2021 census exceeded the national average (9.9%) and the state average, marking it as a growth leader in the region. Population growth for the area was primarily driven by interstate migration, which contributed approximately 73.4% of overall population gains during recent periods, although all drivers, including natural growth and overseas migration, were positive factors.

AreaSearch is adopting ABS/Geoscience Australia projections for each SA2 area, as released in 2024 with 2022 as the base year. For any SA2 areas not covered by this data, AreaSearch is utilizing the VIC State Government's Regional/LGA projections released in 2023, with adjustments made employing a method of weighted aggregation of population growth from LGA to SA2 levels. Growth rates by age group from these aggregations are also applied across all areas for years 2032 to 2041. Considering the projected demographic shifts, exceptional growth, placing it in the top 10 percent of national areas, is predicted over the period, with the area expected to expand by 8,327 persons by 2041 based on the latest annual ERP population numbers, reflecting an increase of 111.0% in total over the 17 years.

The level of residential development activity in Diggers Rest was found to be higher than 90% of real estate markets across the country

Diggers Rest has averaged around 234 new dwelling approvals per year, totalling 1,172 homes over the past 5 financial years. So far in FY-26, 62 approvals have been recorded. At an average of 2.7 new residents per year for each dwelling over the past 5 financial years (between FY-21 and FY-25), indicating healthy demand that should support property values, new homes are being built at an average construction cost of $243,000—below regional norms—reflecting more affordable housing options for purchasers. Additionally, $235,000 in commercial development approvals have been recorded this financial year, demonstrating the area's residential nature.

Compared to Greater Melbourne, Diggers Rest has 164.0% more new home approvals (per person), which should provide buyers with ample choice, though building activity has slowed in recent years. This activity is well above average nationally, reflecting strong developer confidence in the area. New building activity shows 96.0% detached dwellings and 4.0% townhouses or apartments, maintaining the area's traditional low density character with a focus on family homes appealing to those seeking space. With around 32 people per dwelling approval, Diggers Rest shows characteristics of a growth area.

Population forecasts indicate Diggers Rest will gain 8,044 residents through to 2041 (from the latest AreaSearch quarterly estimate). Building activity is keeping pace with growth projections, though buyers may experience heightened competition as the population grows.

Diggers Rest has moderate levels of nearby infrastructure activity, ranking in the 40thth percentile nationally

Nothing can influence an area's performance as much as changes to local infrastructure, major projects, and planning initiatives. In total 41 projects have been identified by AreaSearch that are likely to have an impact on the area. Key projects include Diggers Rest Town Centre (proposed mixed-use precinct), Grandview Estate, Nightjar Estate, and Mary St, Diggers Rest, with the list below detailing those likely to be of most relevance.

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

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Employment conditions in Diggers Rest demonstrate strong performance, ranking among the top 35% of areas assessed nationally

Diggers Rest possesses a skilled workforce with diverse sector representation, an unemployment rate of just 2.9%, and relative employment stability over the past year. As of December 2025, 4,278 residents are in work, while the unemployment rate is 1.9% below Greater Melbourne's rate of 4.8%, and workforce participation is well beyond standard (81.3% compared to Greater Melbourne's 71.3%). Based on Census responses, a high 25.8% of residents were found to work from home, though Covid-19 lockdown impacts should be considered.

Leading employment industries among residents comprise health care & social assistance, construction, and transport, postal & warehousing. The area shows particularly strong specialization in transport, postal & warehousing, with an employment share of 2.1 times the regional level. Conversely, professional & technical services are under-represented, with only 6.0% of Diggers Rest's workforce compared to 10.1% in Greater Melbourne. The area appears to offer limited employment opportunities locally, as indicated by the count of the Census working population versus the resident population.

Based on AreaSearch analysis of SALM and ABS data, during the year to December 2025, the labour force decreased by 0.5% while employment declined by 0.4%, leaving unemployment broadly flat. In contrast, Greater Melbourne experienced employment growth of 2.4% and labour force growth of 2.8%, with a 0.3 percentage point rise. Jobs and Skills Australia's national employment forecasts from May-25 can offer further insight into potential future demand within Diggers Rest. These projections, covering five and ten-year periods, have been mapped against the local employment profile to estimate growth patterns. While national employment is forecast to expand by 6.6% over five years and 13.7% over ten years, growth rates differ significantly between industry sectors. Applying these industry-specific projections to Diggers Rest's employment mix suggests local employment should increase by 6.2% over five years and 12.9% over ten years (please note this is a simple weighting extrapolation for illustrative purposes and does not take into account localised population projections).

The area exhibits notably strong income performance, ranking higher than 70% of areas assessed nationally through AreaSearch analysis

As per AreaSearch's latest postcode level ATO data released for FY-23, the Diggers Rest SA2's median income among taxpayers is $64,070, with an average of $71,938. This is above the national average, and compares to Greater Melbourne's median of $57,688 and average of $75,164. Based on Wage Price Index growth of 8.25% since FY-23, current estimates would be approximately $69,356 (median) and $77,873 (average) as of September 2025. Census data reveals household, family and personal incomes in Diggers Rest cluster around the 71st percentile nationally. Distribution data shows the $1,500 - 2,999 earnings band captures 43.5% of the community (3,153 individuals), aligning with the broader area where this cohort likewise represents 32.8%. High housing costs consume 16.7% of income, though strong earnings still place disposable income at the 65th percentile and the area's SEIFA income ranking places it in the 6th decile.

Diggers Rest is characterized by a predominantly suburban housing profile, with ownership patterns similar to the broader region

Dwelling structure within Diggers Rest, as evaluated at the latest Census, comprised 92.2% houses and 7.8% other dwellings (semi-detached, apartments, 'other' dwellings), in comparison to Melbourne metro's 67.9% houses and 32.1% other dwellings. Meanwhile, the level of home ownership within Diggers Rest was lagging that of Melbourne metro, at 18.3%, with the remainder of dwellings either mortgaged (60.3%) or rented (21.4%). The median monthly mortgage repayment in the area was below the Melbourne metro average at $1,800, while the median weekly rent figure was recorded at $396, compared to Melbourne metro's $2,000 and $390. Nationally, Diggers Rest's mortgage repayments are lower than the Australian average of $1,863, while rents are exceeding the national figure of $375.

Diggers Rest has a typical household mix, with a fairly typical median household size

Family households dominate at 76.2% of all households, comprising 36.2% couples with children, 27.8% couples without children, and 10.8% single parent families. Non-family households make up the remaining 23.8%, with lone person households at 21.5% and group households comprising 2.4% of the total. The median household size of 2.6 people matches the Greater Melbourne average.

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

The area faces educational challenges, with university qualification rates (26.0%) substantially below the Greater Melbourne average of 37.0%. This represents both a challenge and an opportunity for targeted educational initiatives. Bachelor degrees lead at 18.0%, followed by postgraduate qualifications (5.3%) and graduate diplomas (2.7%). Trade and technical skills feature prominently, with 39.7% of residents aged 15+ holding vocational credentials, including advanced diplomas (13.3%) and certificates (26.4%).

Educational participation is notably high, with 26.3% of residents currently enrolled in formal education. This includes 10.0% in primary education, 5.2% in secondary education, and 3.6% pursuing tertiary education.

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

Public transport analysis reveals 33 active transport stops operating within Diggers Rest, comprising a mix of buses. These stops are serviced by 3 individual routes, collectively providing 1,427 weekly passenger trips. Transport accessibility is rated as good, with residents typically located 262 meters from the nearest transport stop. As a primarily residential area, most residents commute outward; the car remains the dominant mode at 89%, with 9% by train. Vehicle ownership averages 1.6 per dwelling, which is above the regional average. A high 25.8% of residents work from home (2021 Census; may reflect COVID-19 conditions).

Service frequency averages 203 trips per day across all routes, equating to approximately 43 weekly trips per individual stop.

Health outcomes in Diggers Rest are marginally below the national average with the level of common health conditions among the general population somewhat typical, though higher than the nation's average among older cohorts

Health indicators suggest below-average outcomes in Diggers Rest, based on AreaSearch's assessment of mortality rates and chronic condition prevalence. The level of common health conditions among the general population is somewhat typical, though higher than the national average among older cohorts, and the rate of private health cover is fairly high at approximately 55% of the total population (~3,980 people).

The most common medical conditions in the area are asthma and mental health issues, impacting 9.6% and 9.0% of residents, respectively, while 71.7% declared themselves as completely clear of medical ailments compared to 72.6% across Greater Melbourne. Health outcomes among the working-age population are broadly typical. The area has 9.7% of residents aged 65 and over (700 people), which is lower than the 15.1% in Greater Melbourne. Health outcomes among seniors present some challenges, though they rank lower nationally than the broader population.

The level of cultural diversity witnessed in Diggers Rest was found to be above average when compared nationally for a number of language and cultural background related metrics

Diggers Rest was found to be more culturally diverse than the vast majority of local markets, with 24.9% of its population born overseas and 24.7% speaking a language other than English at home. The main religion in Diggers Rest is Christianity, which makes up 47.2% of people. However, the most apparent overrepresentation is in Other, which comprises 5.5% of the population, compared to 2.3% across Greater Melbourne.

In terms of ancestry (country of birth of parents), the top three represented groups in Diggers Rest are Australian, comprising 23.8% of the population, which is substantially higher than the regional average of 18.4%, English, comprising 20.7% of the population, and Other, comprising 10.8% of the population. Additionally, there are notable divergences in the representation of certain other ethnic groups: Maltese is notably overrepresented at 3.0% of Diggers Rest (vs 1.1% regionally), Croatian at 1.3% (vs 0.7%) and Polish at 1.2% (vs 0.8%).

Diggers Rest hosts a very young demographic, ranking in the bottom 10% of areas nationwide

At 32 years, Diggers Rest's median age is materially younger than the Greater Melbourne average of 37 and also significantly lower than the 38-year national average. Relative to Greater Melbourne, Diggers Rest has a higher concentration of 35 - 44 residents (19.7%) but fewer 15 - 24 year-olds (9.2%). This 35 - 44 concentration is well above the national 14.3%. Post-2021 Census data shows the 35 to 44 age group has grown from 16.9% to 19.7% of the population, while the 5 to 14 cohort increased from 11.8% to 13.5%. Conversely, the 25 to 34 cohort has declined from 24.6% to 19.9%. Demographic modeling suggests Diggers Rest's age profile will evolve significantly by 2041. The 35 to 44 cohort shows the strongest projected growth at 104%, adding 1,490 residents to reach 2,918.