Kensington (Vic.)

Kensington has seen population growth performance typically on par with national averages when looking at short and medium term trends

Based on AreaSearch's analysis, Kensington's population is around 11,709 as of Feb 2026. This reflects an increase of 964 people (9.0%) since the 2021 Census, which reported a population of 10,745 people. The change is inferred from the estimated resident population of 11,699 from the ABS as of June 2024 and an additional 70 validated new addresses since the Census date. This population level equates to a density ratio of 5,446 persons per square kilometer, which lies in the top 10% of national locations assessed by AreaSearch, making land in the area a highly sought resource. Kensington's 9.0% growth since the census positions it within 0.9 percentage points of the national average (9.9%), demonstrating competitive growth fundamentals. Population growth for the area was primarily driven by overseas migration, which contributed approximately 73.5% of overall 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. Regarding demographic trends, an above-median population growth of statistical areas across the nation is projected, with the area expected to increase by 2,389 persons by 2041 based on the latest annual ERP population numbers, reflecting a gain of 20.3% in total over the 17 years.

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

Kensington has experienced around 234 dwellings receiving development approval each year, with 1,170 homes approved over the past 5 financial years (between FY-21 and FY-25) and 446 so far in FY-26. With an average of only 0.1 people per year moving to the area for each dwelling built over the past 5 financial years (between FY-21 and FY-25), supply is meeting or surpassing demand, providing greater buyer choice and supporting potential for population growth above projections. New properties are constructed at an average value of $503,000, revealing that developers are targeting the premium market segment with higher-end properties. There have also been $77.0 million in commercial approvals this financial year, suggesting robust local business investment.

When measured against Greater Melbourne, Kensington has 55.0% more building activity (per person), offering buyers greater choice, though building activity has slowed in recent years. This activity is substantially higher than nationally, suggesting strong developer confidence in the location. Meanwhile, recent development has been entirely comprised of medium and high-density housing. This trend toward denser development provides accessible entry options and appeals to downsizers, investors, and entry-level buyers. This shows a considerable change from the current housing mix (currently 17.0% houses), reflecting reduced availability of development sites and addressing shifting lifestyle demands and affordability requirements. The location has approximately 5865 people per dwelling approval, demonstrating an established market.

Population forecasts indicate Kensington will gain 2,379 residents through to 2041 (from the latest AreaSearch quarterly estimate). With current construction levels, housing supply should adequately meet demand, creating favourable conditions for buyers while potentially enabling growth that exceeds current forecasts.

Kensington has very high levels of nearby infrastructure activity, ranking in the top 20% nationally

Nothing can influence an area's performance as much as changes to local infrastructure, major projects, and planning initiatives. In total, 36 projects have been identified by AreaSearch that are likely to have an impact on the area. Key projects include Younghusband Kensington, Assemble 402-444 Macaulay Road Build-to-Rent, West Melbourne Waterfront, and Flemington Housing Precinct Renewal (Various Sites), 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 Kensington remain below the national average according to AreaSearch analysis

Kensington possesses a highly educated workforce, with professional services showing strong representation, an unemployment rate of 7.1%, and 3.6% in estimated employment growth over the past year. As of December 2025, 7,669 residents are in work while the unemployment rate is 2.4% above Greater Melbourne's rate of 4.8%, and workforce participation is well beyond standard (81.2% compared to Greater Melbourne's 71.3%). Based on Census responses, a high 52.7% of residents were found to work from home, though Covid-19 lockdown impacts should be considered.

Employment among residents is concentrated in professional & technical, health care & social assistance, and education & training. The area shows particularly strong specialization in professional & technical, with an employment share of 1.7 times the regional level. In contrast, construction employs just 4.3% 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 3.6% and the labour force increased by 4.6%, resulting in unemployment rising by 0.9 percentage points. This contrasts with Greater Melbourne, where employment rose by 2.4%, the labour force grew by 2.8%, and unemployment rose 0.3 percentage points. Jobs and Skills Australia's national employment forecasts from May-25 can offer further insight into potential future demand within Kensington. 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 Kensington's employment mix suggests local employment should increase by 7.3% over five years and 14.7% over ten years (please note this is a simple weighting extrapolation for illustrative purposes and does not take into account localised population projections).

Income metrics indicate excellent economic conditions, with the area achieving higher performance than 75% of national locations assessed by AreaSearch

The Kensington SA2's income level is extremely high nationally according to the latest ATO data aggregated by AreaSearch for FY-23. The Kensington SA2's median income among taxpayers is $67,191 and the average income stands at $84,514, which compares to figures for Greater Melbourne's of $57,688 and $75,164 respectively. Based on Wage Price Index growth of 8.25% since FY-23, current estimates would be approximately $72,734 (median) and $91,486 (average) as of September 2025. From the 2021 Census, household, family and personal incomes all rank highly in Kensington, between the 79th and 93rd percentiles nationally. The data shows the $1,500 - 2,999 earnings band captures 31.5% of the community (3,688 individuals), mirroring the surrounding region where 32.8% occupy this bracket. Higher earners represent a substantial presence with 36.0% exceeding $3,000 weekly, indicating strong purchasing power within the community. High housing costs consume 16.5% of income, though strong earnings still place disposable income at the 77th percentile and the area's SEIFA income ranking places it in the 8th decile.

Kensington displays a diverse mix of dwelling types, with a higher proportion of rental properties than the broader region

Dwelling structure within Kensington, as evaluated at the latest Census, comprised 17.2% houses and 82.8% 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 Kensington was lagging that of Melbourne metro, at 18.6%, with the remainder of dwellings either mortgaged (31.2%) or rented (50.2%). The median monthly mortgage repayment in the area was above the Melbourne metro average at $2,162, while the median weekly rent figure was recorded at $416, compared to Melbourne metro's $2,000 and $390. Nationally, Kensington's mortgage repayments are significantly higher than the Australian average of $1,863, while rents are substantially above the national figure of $375.

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

Family households dominate at 56.3% of all households, comprising 20.1% couples with children, 27.1% couples without children, and 7.5% single parent families. Non-family households make up the remaining 43.7%, with lone person households at 34.9% and group households comprising 8.8% of the total. The median household size of 2.1 people is smaller than the Greater Melbourne average of 2.6.

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

Educational attainment in Kensington significantly surpasses broader benchmarks, with 59.1% of residents aged 15+ holding university qualifications compared to 30.4% in Australia and 33.4% in VIC. This substantial educational advantage positions the area strongly for knowledge-based opportunities. Bachelor degrees lead at 35.5%, followed by postgraduate qualifications (18.3%) and graduate diplomas (5.3%). Vocational pathways account for 17.3% of qualifications among those aged 15+ – advanced diplomas (8.5%) and certificates (8.8%).

Educational participation is notably high, with 28.0% of residents currently enrolled in formal education. This includes 10.3% in tertiary education, 6.9% in primary education, and 4.8% pursuing secondary education.

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

Public transport analysis reveals 22 active transport stops operating within Kensington, comprising a mix of light rail and buses. These stops are serviced by 4 individual routes, collectively providing 4,527 weekly passenger trips. Transport accessibility is rated as excellent, with residents typically located 197 meters from the nearest transport stop. As a primarily residential area, most residents commute outward; the car remains the dominant mode at 54%, with 20% by train and 9% cycling. Vehicle ownership averages 0.6 per dwelling, which is below the regional average. A high 52.7% of residents work from home (2021 Census; may reflect COVID-19 conditions).

Service frequency averages 646 trips per day across all routes, equating to approximately 205 weekly trips per individual stop.

Kensington's residents are relatively healthy in comparison to broader Australia with the level of common health conditions among the general population somewhat typical, though higher than the nation's average among older cohorts

Kensington's health metrics sit close to national benchmarks, 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. The rate of private health cover is exceptionally high at approximately 62% of the total population (7,212 people), compared to 56.7% across Greater Melbourne and a national average of 55.7%.

The most common medical conditions in the area are mental health issues and asthma, impacting 10.6% and 8.9% of residents, respectively, while 71.7% 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 11.0% of residents aged 65 and over (1,284 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.

Kensington was found to be more culturally diverse than the vast majority of local markets in Australia, upon assessment of a range of language and cultural background related metrics

Kensington was found to be more culturally diverse than the vast majority of local markets, with 32.2% of its population born overseas and 25.7% speaking a language other than English at home. The main religion in Kensington is Christianity, which makes up 29.0% of people. However, the most apparent overrepresentation is in Buddhism, which comprises 4.4% 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 Kensington are English, comprising 21.6% of the population, Australian, comprising 18.4% of the population, and Other, comprising 11.7% of the population. Additionally, there are notable divergences in the representation of certain other ethnic groups: Irish is notably overrepresented at 10.9% of Kensington (vs 6.5% regionally), Vietnamese at 2.3% (vs 1.9%) and Chinese at 7.5% (vs 6.5%).

Kensington's population is younger than the national pattern

Kensington's median age of 35 years stands slightly younger than Greater Melbourne's 37 as well as somewhat younger than the 38-year national average. The 25 - 34 age group shows strong representation at 24.0% compared to Greater Melbourne, whereas the 5 - 14 cohort is less prevalent at 8.0%. This 25 - 34 concentration is well above the national 14.4%. In the period since 2021, the 15 to 24 age group has grown from 10.4% to 12.0% of the population. Conversely, the 45 to 54 cohort has declined from 12.4% to 11.4%. Population forecasts for 2041 indicate substantial demographic changes for Kensington. The 45 to 54 age cohort is projected to rise substantially, expanding by 733 people (55%) from 1,337 to 2,071. Meanwhile, the 15 to 24 cohort grows by a modest 0% (0 people).