Forest Hill

An assessment of population growth drivers in Forest Hill reveals an overall ranking slightly below national averages considering recent, and medium term trends

Forest Hill's population was approximately 11,250 as of November 2025, according to AreaSearch's analysis. This figure represents an increase of 470 people, a 4.4% rise from the 2021 Census count of 10,780 residents. The growth is inferred from the Australian Bureau of Statistics' estimated resident population of 11,213 as of June 2024 and an additional 157 validated new addresses since the Census date. This results in a population density ratio of 2,764 persons per square kilometer, placing Forest Hill in the upper quartile relative to national locations assessed by AreaSearch. The area's growth rate exceeded that of its SA4 region (4%), marking it as a 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, they utilize Victoria's State Government 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. Future population trends suggest a median national growth rate, with an expected increase of 1,220 persons to 2041 based on the latest annual ERP population numbers, reflecting a total increase of 10.5% over the 17-year period.

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

Forest Hill averaged approximately 44 new dwelling approvals annually between FY-21 and FY-25. Over these five financial years, a total of 220 homes were approved, with an additional 14 approved so far in FY-26. The average number of people moving to the area per year for each dwelling built during this period was zero.

This indicates that new supply is meeting or exceeding demand, providing ample buyer choice and creating capacity for population growth beyond current forecasts. The average construction cost value of new homes being built is $507,000, suggesting developers are focusing on the premium market with high-end developments. In FY-26, $16.7 million in commercial development approvals have been recorded, indicating balanced commercial development activity in Forest Hill compared to Greater Melbourne.

Over the five-year period between FY-21 and FY-25, Forest Hill showed moderately higher new home approvals, with 13.0% above the regional average per person. The composition of new development in Forest Hill consists of 73.0% standalone homes and 27.0% attached dwellings, maintaining the area's traditional suburban character with a focus on family homes appealing to those seeking space. With around 226 people per dwelling approval, Forest Hill exhibits characteristics of a low density area. According to the latest AreaSearch quarterly estimate, Forest Hill is forecasted to gain 1,183 residents by 2041. Current development appears well-matched to future needs, supporting steady market conditions without extreme price pressure in the area.

Forest Hill has moderate levels of nearby infrastructure activity, ranking in the 42ndth percentile nationally

Changes in local infrastructure significantly affect an area's performance. AreaSearch has identified 22 projects that could impact this area. Notable ones include Forest Ridge, Healesville Freeway Reserve Park (ngarrak nakorang wilam park), City Park, and Forest Hill Chase Basketball Stadium. The following list details those most relevant.

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The labour market in Forest Hill demonstrates typical performance when compared to similar areas across Australia

Forest Hill has a highly educated workforce with strong representation in professional services. Its unemployment rate was 3.6% as of September 2025.

This rate is 1.1 percentage points lower than Greater Melbourne's rate of 4.7%. Employment growth over the past year was estimated at 1.6%. As of September 2025, 5,535 residents were employed, with an unemployment rate of 1.0% below Greater Melbourne's.

Workforce participation in Forest Hill lagged significantly behind Greater Melbourne's, at 57.7% compared to 64.1%. Leading employment industries among Forest Hill residents are health care & social assistance, professional & technical services, and retail trade. Construction employs only 6.6% of local workers, below Greater Melbourne's rate of 9.7%. Many residents commute elsewhere for work based on Census data. Between September 2024 and September 2025, employment levels in Forest Hill increased by 1.6%, while the labour force grew by 0.9%. This resulted in a 0.6 percentage point decrease in unemployment. In comparison, Greater Melbourne recorded employment growth of 3.0% and labour force growth of 3.3%, with unemployment rising by 0.3 percentage points. As of 25-Nov-25, Victoria's employment grew by 1.13% year-on-year, adding 41,950 jobs. The state's unemployment rate was 4.7%, compared to the national rate of 4.3%. State-level employment growth outpaced the national average of 0.14%. National employment forecasts from Jobs and Skills Australia project a 6.6% increase over five years and 13.7% over ten years. Applying these projections to Forest Hill's employment mix suggests local employment should increase by 6.7% over five years and 13.9% over ten years, based on simple weighting extrapolation for illustrative purposes.

Income levels sit below national averages according to AreaSearch assessment

The median taxpayer income in Forest Hill SA2 is $47,008 based on postcode level ATO data aggregated by AreaSearch for the financial year 2022. The average income is $61,089. This is lower than Greater Melbourne's median income of $54,892 and average income of $73,761. By September 2025, estimates suggest the median income will be approximately $53,173 and the average will be around $68,517, accounting for a 12.16% growth in wages since financial year 2022. According to the 2021 Census, household income ranks at the 45th percentile with weekly earnings of $1,658, while personal income is at the 29th percentile. The earnings profile shows that 29.1% of locals (3,273 people) earn between $1,500 and $2,999 annually, similar to the broader area where 32.8% fall into this bracket. Housing affordability is a significant issue with only 83.6% of income remaining after housing costs, ranking at the 45th percentile. The area's SEIFA income ranking places it in the 7th decile.

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

Forest Hill's dwelling structure, as per the latest Census, consisted of 72.0% houses and 28.0% other dwellings (semi-detached, apartments, 'other' dwellings). This compares to Melbourne metro's figures of 73.0% houses and 26.9% other dwellings. Home ownership in Forest Hill stood at 39.6%, similar to Melbourne metro's figure. Mortgaged dwellings accounted for 34.0%, with rented dwellings making up 26.5%. The median monthly mortgage repayment was $2,123, lower than Melbourne metro's average of $2,200. Median weekly rent in Forest Hill was $396, compared to Melbourne metro's $410. Nationally, Forest Hill's mortgage repayments were higher at $2,123 versus the Australian average of $1,863, while rents were also higher at $396 compared to the national figure of $375.

Forest Hill has a typical household mix, with a lower-than-average median household size

Family households account for 69.6% of all households, including 34.0% couples with children, 23.0% couples without children, and 11.0% single parent families. Non-family households constitute the remaining 30.4%, with lone person households at 27.5% and group households comprising 3.0%. The median household size is 2.5 people, which is smaller than the Greater Melbourne average of 2.6.

Forest Hill shows strong educational performance, ranking in the upper quartile nationally when assessed across multiple qualification and achievement indicators

Forest Hill's educational attainment is notably higher than broader averages. Among residents aged 15+, 41.2% hold university qualifications, compared to 30.4% nationally and 31.2% in the SA4 region. Bachelor degrees are most common at 26.3%, followed by postgraduate qualifications (11.6%) and graduate diplomas (3.3%). Vocational pathways account for 23.7% of qualifications, with advanced diplomas at 11.4% and certificates at 12.3%.

Educational participation is high, with 27.9% of residents currently enrolled in formal education. This includes 8.7% in primary education, 7.3% in secondary education, and 5.9% pursuing tertiary education.

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

Forest Hill has 52 active public transport stops offering lightrail and bus services. These stops are served by 16 routes that facilitate 5,654 weekly passenger trips in total. Transport accessibility is rated good, with residents generally located 215 meters from the nearest stop.

Service frequency averages 807 trips per day across all routes, resulting in approximately 108 weekly trips per individual stop.

Forest Hill's residents are relatively healthy in comparison to broader Australia with common health conditions slightly more prevalent than average across both younger and older age cohorts

Forest Hill's health metrics are close to national benchmarks, with common health conditions slightly more prevalent across both younger and older age cohorts. Private health cover is relatively low at approximately 50% of the total population (~5,625 people), compared to 54.2% in Greater Melbourne and the national average of 55.3%. The most common medical conditions are arthritis (7.8%) and mental health issues (7.5%), while 70.2% of residents declare themselves completely clear of medical ailments, compared to 72.3% in Greater Melbourne.

The area has 22.3% of residents aged 65 and over (2,506 people), which is higher than the 20.4% in Greater Melbourne.

Forest Hill is among the most culturally diverse areas in the country based on AreaSearch assessment of a range of language and cultural background related metrics

Forest Hill has a high level of cultural diversity, with 43.8% of its population born overseas and 44.3% speaking a language other than English at home. Christianity is the predominant religion in Forest Hill, making up 43.9% of people there, compared to Greater Melbourne's overall figure. Buddhism is notably overrepresented in Forest Hill, comprising 7.3% of its population, higher than the regional average of 5.3%.

In terms of ancestry, the top three represented groups are Chinese (21.0%), English (17.7%), and Australian (17.0%). Some other ethnic groups also show notable differences: Sri Lankan is overrepresented at 1.0% compared to the regional figure of 0.9%, Greek at 3.6% versus 2.4%, and Vietnamese at 1.6% against a regional average of 1.3%.

Forest Hill's median age exceeds the national pattern

The median age in Forest Hill is 42 years, which is significantly higher than Greater Melbourne's average of 37 years and Australia's average of 38 years. The 75-84 age group constitutes 7.8% of the population in Forest Hill, compared to a lower percentage in Greater Melbourne. Meanwhile, the 25-34 age group makes up 12.0% of the population, which is less prevalent than in Greater Melbourne. According to data from the 2021 Census, the 25-34 age group has grown from 11.3% to 12.0%, while the 45-54 cohort has declined from 13.5% to 12.7%. Population forecasts for the year 2041 indicate substantial demographic changes in Forest Hill, with the 45-54 age group expected to grow by 20% (an increase of 291 people), reaching a total of 1,720 from 1,428. Notably, the combined age groups of 65 and above are projected to account for 56% of the total population growth, reflecting Forest Hill's aging demographic profile. In contrast, the 0-4 and 5-14 age cohorts are expected to experience population declines.