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

Based on AreaSearch's analysis, Forest Hill's population is around 11,248 as of Feb 2026. This reflects an increase of 468 people (4.3%) since the 2021 Census, which reported a population of 10,780 people. The change is inferred from the estimated resident population of 11,213 from the ABS as of June 2024 and an additional 157 validated new addresses since the Census date. This population level equates to a density ratio of 2,763 persons per square kilometer, placing it in the upper quartile relative to national locations assessed by AreaSearch. Forest Hill's 4.3% growth since the census positions it within 0.5 percentage points of the SA3 area (4.8%), demonstrating competitive growth fundamentals. Population growth for the area was primarily driven by overseas migration, which was essentially the sole driver of population gains during recent periods.

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 utilising 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. As we examine future population trends, a population increase just below the median of national areas is expected, with the area expected to expand by 1,220 persons to 2041 based on the latest annual ERP population numbers, reflecting an increase of 10.5% in total over the 17 years.

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

Forest Hill has averaged around 44 new dwelling approvals per year, with 220 homes approved over the past 5 financial years (between FY-21 and FY-25) and 18 so far in FY-26. With an average of only 0 people per year moving to the area for each dwelling built over the past 5 financial years (between FY-21 and FY-25), new supply is keeping pace with or exceeding demand, offering ample buyer choice and creating capacity for population growth beyond current forecasts, while new homes are being built at an average construction cost of $507,000, showing that developers are focusing on the premium market with high-end developments. Additionally, $16.7 million in commercial development approvals have been recorded this financial year, suggesting balanced commercial development activity.

Compared to Greater Melbourne, Forest Hill shows moderately higher new home approvals (13.0% above regional average per person over the 5 year period), balancing buyer choice with support for current property values. New development 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 shows characteristics of a low density area.

Population forecasts indicate Forest Hill will gain 1,185 residents through to 2041 (from the latest AreaSearch quarterly estimate). Current development appears well-matched to future needs, supporting steady market conditions without extreme price pressure.

Forest Hill has moderate levels of nearby infrastructure activity, ranking in the top 50% nationally

Nothing can influence an area's performance as much as changes to local infrastructure, major projects, and planning initiatives. In total, 25 projects have been identified by AreaSearch that are likely to have an impact on the area. Key projects include Forest Ridge, Healesville Freeway Reserve Park (ngarrak nakorang wilam park), City Park, and Forest Hill Chase Basketball Stadium, 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.

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.

Employment conditions in Forest Hill remain below the national average according to AreaSearch analysis

Forest Hill possesses a highly educated workforce, with professional services showing strong representation, an unemployment rate of only 3.9%, and 1.8% in estimated employment growth over the past year. As of December 2025, 5,545 residents are in work while the unemployment rate is 0.8% below Greater Melbourne's rate of 4.8%, and workforce participation lags significantly (61.0% compared to Greater Melbourne's 71.3%). Based on Census responses, a high 37.1% 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, professional & technical, and retail trade. In contrast, construction employs just 6.6% of local workers, below Greater Melbourne's 9.7%. While local employment opportunities exist in the area, it appears many residents commute elsewhere for work, based on the count of Census working population to local population.

Based on AreaSearch analysis of SALM and ABS data, during the year to December 2025, employment levels increased by 1.8% and labour force increased by 1.6%, resulting in unemployment falling by 0.2 percentage points. By comparison, Greater Melbourne recorded employment growth of 2.4%, labour force growth of 2.8%, with unemployment rising 0.3 percentage points. Jobs and Skills Australia's national employment forecasts from May-25 can offer further insight into potential future demand within Forest Hill. 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 Forest Hill's employment mix suggests local employment should increase by 6.7% over five years and 13.9% over ten years (please note this is a simple weighting extrapolation for illustrative purposes and does not take into account localised population projections).

Income levels sit below national averages according to AreaSearch assessment

The Forest Hill SA2 shows a median taxpayer income of $50,027 and an average of $63,220 according to the latest postcode level ATO data aggregated by AreaSearch for FY-23. This is below the national average, contrasting with Greater Melbourne's median income of $57,688 and average income of $75,164. Based on Wage Price Index growth of 8.25% since FY-23, current estimates would be approximately $54,154 (median) and $68,436 (average) as of September 2025. From the 2021 Census, household income ranks at the 45th percentile ($1,658 weekly), while personal income sits at the 29th percentile. The earnings profile shows the predominant cohort spans 29.1% of locals (3,273 people) in the $1,500 - 2,999 category, mirroring the broader area where 32.8% occupy this bracket. Housing affordability pressures are severe, with only 83.6% of income remaining, ranking at the 45th percentile and 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

Dwelling structure within Forest Hill, as evaluated at the latest Census, comprised 72.0% houses and 28.0% 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 Forest Hill was higher than that of Melbourne metro, at 39.6%, with the remainder of dwellings either mortgaged (34.0%) or rented (26.5%). The median monthly mortgage repayment in the area was above the Melbourne metro average at $2,123, while the median weekly rent figure was recorded at $396, compared to Melbourne metro's $2,000 and $390. Nationally, Forest Hill's mortgage repayments are significantly higher than the Australian average of $1,863, while rents exceed the national figure of $375.

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

Family households dominate at 69.6% of all households, comprising 34.0% couples with children, 23.0% couples without children, and 11.0% single parent families. Non-family households make up the remaining 30.4%, with lone person households at 27.5% and group households comprising 3.0% of the total. The median household size of 2.5 people 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

Educational attainment in Forest Hill significantly surpasses broader benchmarks, with 41.2% of residents aged 15+ holding university qualifications compared to 30.4% in Australia and 31.2% in the SA4 region. This substantial educational advantage positions the area strongly for knowledge-based opportunities. Bachelor degrees lead at 26.3%, followed by postgraduate qualifications (11.6%) and graduate diplomas (3.3%). Vocational pathways account for 23.7% of qualifications among those aged 15+; advanced diplomas (11.4%) and certificates (12.3%).

Educational participation is notably 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 good compared to other areas nationally based on assessment of service frequency, route connectivity and accessibility

Public transport analysis reveals 52 active transport stops operating within Forest Hill, comprising a mix of light rail and buses. These stops are serviced by 16 individual routes, collectively providing 5,611 weekly passenger trips. Transport accessibility is rated as good, with residents typically located 215 meters from the nearest transport stop. As a primarily residential area, most residents commute outward; the car remains the dominant mode at 85%, with 8% by train. Vehicle ownership averages 1.2 per dwelling. A high 37.1% of residents work from home (2021 Census; may reflect COVID-19 conditions).

Service frequency averages 801 trips per day across all routes, equating to approximately 107 weekly trips per individual stop.

Forest Hill's residents are extremely healthy with prevalence of common health conditions low among the general population though higher than the nation's average across older, at risk cohorts

Analysis of health metrics shows strong performance throughout Forest Hill, based on AreaSearch's assessment of mortality rates and chronic condition prevalence. The prevalence of common health conditions is low among the general population, though higher than the national average across older, at-risk cohorts. The rate of private health cover is relatively low at approximately 50% of the total population (~5,680 people), compared to 56.7% across Greater Melbourne and a national average of 55.7%.

The most common medical conditions in the area are arthritis and mental health issues, impacting 7.8% and 7.5% of residents, respectively, while 70.2% declared themselves as completely clear of medical ailments compared to 72.6% across Greater Melbourne. The under-65 population demonstrates better than average health outcomes. The area has 22.8% of residents aged 65 and over (2,560 people), which is higher than the 15.1% in Greater Melbourne, though ranking lower nationally than the broader population.

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 scores highly on cultural diversity, with 43.8% of its population born overseas and 44.3% speaking a language other than English at home. The main religion in Forest Hill is Christianity, which makes up 43.9% of the people. However, the most apparent overrepresentation is in Buddhism, which comprises 7.3% of the population, compared to 4.2% across Greater Melbourne.

In terms of ancestry (country of birth of parents), the top three represented groups in Forest Hill are Chinese, comprising 21.0% of the population, which is substantially higher than the regional average of 6.5%, English, comprising 17.7% of the population, and Australian, comprising 17.0% of the population. Additionally, there are notable divergences in the representation of certain other ethnic groups: Sri Lankan is notably overrepresented at 1.0% of Forest Hill (vs 0.8% regionally), Greek at 3.6% (vs 2.7%) and Vietnamese at 1.6% (vs 1.9%).

Forest Hill's median age exceeds the national pattern

The 42-year median age in Forest Hill is significantly above Greater Melbourne's average of 37 and similarly considerably older than Australia's 38 years. The 75 - 84 age group shows strong representation at 8.0% compared to Greater Melbourne, whereas the 25 - 34 cohort is less prevalent at 11.7%. Post-2021 Census data shows the 45 to 54 cohort has declined from 13.5% to 12.7%. Population forecasts for 2041 indicate substantial demographic changes for Forest Hill. Leading the demographic shift, the 45 to 54 group will grow by 21% (297 people), reaching 1,720 from 1,422. Notably, the combined 65+ age groups will account for 53% of total population growth, reflecting the area's aging demographic profile. In contrast, the 0 to 4 and 5 to 14 cohorts are expected to experience population declines.