Kensington (Vic.)

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

Kensington's population was around 12,423 as of May 2026. This reflected an increase of 1,678 people since the 2021 Census, which reported a population of 10,745 people. The change was inferred from the estimated resident population of 12,423 from the ABS as of June 2025 and an additional 70 validated new addresses since the Census date. This level of population equated to a density ratio of 5,778 persons per square kilometer, placing Kensington in the top 10% of national locations assessed by AreaSearch. Kensington's growth of 15.6% since the 2021 census exceeded the state average of 9.3%. Population growth was primarily driven by overseas migration contributing approximately 61.6% of overall population gains during recent periods, although all drivers including interstate migration and natural growth were positive factors.

AreaSearch adopted 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 utilized 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 were applied across all areas for years 2032 to 2041. Considering projected demographic shifts, Kensington was expected to grow by 2,417 persons to 2041 based on the latest annual ERP population numbers, reflecting an increase of 19.5% in total over the 16 years.

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

Kensington has received approximately 234 dwelling approvals annually over the past five financial years, totalling 1,170 homes. As of FY-26447 approvals have been recorded. On average, 0.1 new residents per year have moved into new homes in Kensington between FY-21 and FY-25. This indicates that new supply is meeting or exceeding demand, providing ample buyer choice and capacity for population growth beyond current forecasts.

The average construction cost value of new dwellings is $503,000, suggesting a focus on the premium segment with upmarket properties. In FY-26, there have been $77.0 million in commercial approvals, indicating strong commercial development momentum in Kensington. Compared to Greater Melbourne, Kensington records 57.0% more construction activity per person, offering buyers greater choice and reflecting robust developer interest in the area. However, building activity has slowed in recent years. All new construction in Kensington has comprised attached dwellings, marking a significant shift from existing housing patterns (currently 17.0% houses). This focus on higher-density living creates more affordable entry points for downsizers, investors, and first-home buyers, suggesting diminishing developable land availability and responding to evolving lifestyle preferences and housing affordability needs. Kensington reflects a highly mature market with around 5865 people per dwelling approval.

According to the latest AreaSearch quarterly estimate, Kensington is forecasted to gain 2,417 residents by 2041. At current development rates, new housing supply should comfortably meet demand, providing good conditions for buyers and potentially supporting growth beyond current population projections.

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

Changes in local infrastructure significantly impact an area's performance. AreaSearch has identified 41 projects that could affect the region. Notable projects include Younghusband Kensington, Assemble's 402-444 Macaulay Road Build-to-Rent development, West Melbourne Waterfront, and the 21-37 Barrett Street Mixed-Use Development. The following list details those most likely to be relevant.

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 has a highly educated workforce with strong representation in professional services. Its unemployment rate was 7.1% as of an unspecified past year. Employment growth over the same period was estimated at 3.6%.

As of December 2025, 7,669 residents were employed, with an unemployment rate of 2.4%, which is 2.4% higher than Greater Melbourne's rate of 4.8%. Workforce participation in Kensington was 76.0%, compared to Greater Melbourne's 69.9%. According to Census responses, 52.7% of residents worked from home, though Covid-19 lockdown impacts should be considered. The dominant employment sectors among residents include professional & technical, health care & social assistance, and education & training.

Kensington has a particularly notable concentration in professional & technical services, with employment levels at 1.7 times the regional average. In contrast, construction employs only 4.3% of local workers, below Greater Melbourne's 9.7%. Many residents appear to commute elsewhere for work based on Census data. Over a 12-month period ending in December 2025, employment increased by 3.6%, while the labour force grew by 4.6%, causing the unemployment rate to rise by 0.9 percentage points. In Greater Melbourne during this same period, employment rose by 2.4%, the labour force grew by 2.8%, and unemployment rose by 0.3 percentage points. Jobs and Skills Australia's national employment forecasts from May-25 suggest that over five years, national employment is forecast to expand by 6.6% and by 13.7% over ten years. Applying these projections to Kensington's employment mix suggests local employment should increase by 7.3% over five years and 14.7% over ten years.

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

According to AreaSearch's aggregation of the latest postcode level ATO data released for financial year 2023, Kensington SA2 had a median income among taxpayers of $67,191. The average income stood at $84,514. Nationally, these figures are extremely high compared to Greater Melbourne's levels of $57,688 and $75,164 respectively. Based on Wage Price Index growth of 9.62% since financial year 2023, current estimates for Kensington would be approximately $73,655 (median) and $92,644 (average) as of March 2026. Census 2021 income data shows household, family and personal incomes in Kensington rank highly nationally, between the 79th and 93rd percentiles. Income distribution data indicates that 31.5% of the population (3,913 individuals) fall within the $1,500 - $2,999 income range, similar to the surrounding region where 32.8% occupy this bracket. The area exhibits considerable affluence with 36.0% earning over $3,000 per week, supporting premium retail and service offerings. High housing costs consume 16.5% of income, but strong earnings place disposable income at the 77th percentile nationally. Kensington's SEIFA income ranking places it in the 9th decile.

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

Kensington's dwelling structure, as per the latest Census, consisted of 17.2% houses and 82.8% other dwellings (semi-detached, apartments, 'other' dwellings). In contrast, Melbourne metro had 67.9% houses and 32.1% other dwellings. Home ownership in Kensington was at 18.6%, with mortgaged dwellings at 31.2% and rented ones at 50.2%. The median monthly mortgage repayment in Kensington was $2,162, higher than Melbourne metro's $2,000. The median weekly rent in Kensington was $416, compared to Melbourne metro's $390. Nationally, Kensington's mortgage repayments were significantly higher than the Australian average of $1,863, and rents were 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 account for 56.3% of all households, including 20.1% couples with children, 27.1% couples without children, and 7.5% single parent families. Non-family households constitute the remaining 43.7%, with lone person households at 34.9% and group households comprising 8.8%. The median household size is 2.1 people, which 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

In Kensington, 59.1% of residents aged 15 and above have university qualifications, exceeding national (30.4%) and Victorian (33.4%) averages. The area's high educational attainment is dominated by bachelor degrees (35.5%), followed by postgraduate qualifications (18.3%) and graduate diplomas (5.3%). Vocational pathways account for 17.3% of qualifications, with advanced diplomas at 8.5% and certificates at 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

Kensington has 22 active public transport stops offering a mix of lightrail and bus services. These are serviced by four routes that collectively facilitate 4,527 weekly passenger trips. The average distance from residents' homes to the nearest stop is 197 meters, indicating excellent transport accessibility. In this primarily residential area, most commuting is outward-bound. Cars remain the dominant mode of transport at 54%, with trains used by 20% and cycling by 9%. Vehicle ownership averages 0.6 per dwelling, below the regional average.

According to the 2021 Census, 52.7% of residents work from home, a figure that may reflect COVID-19 conditions. Service frequency across all routes averages 646 trips per day, 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 are close to national benchmarks. AreaSearch assessed mortality rates and chronic condition prevalence, finding common health conditions among Kensington residents somewhat typical but higher than the national average among older cohorts. Private health cover is exceptionally high at approximately 62% of the total population (7,652 people), compared to 56.7% across Greater Melbourne and a national average of 55.7%.

The most common medical conditions are mental health issues impacting 10.6% of residents and asthma affecting 8.9%. A total of 71.7% of residents declared themselves completely clear of medical ailments, compared to 72.6% across Greater Melbourne. The under-65 population demonstrates better than average health outcomes. Kensington has 10.5% of residents aged 65 and over (1,300 people), lower than the 15.0% in Greater Melbourne. Health outcomes among seniors present some challenges but 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's population shows high cultural diversity, with 32.2% born overseas and 25.7% speaking a language other than English at home. Christianity is the predominant religion in Kensington, comprising 29.0%. Buddhism is slightly overrepresented compared to Greater Melbourne, making up 4.4% of Kensington's population versus 4.2%.

The top three ancestry groups are English (21.6%), Australian (18.4%), and Other (11.7%). Notable ethnic group divergences include Irish, which is higher at 10.9% compared to the regional average of 6.5%, Vietnamese at 2.3% versus 1.9%, and Chinese at 7.5% versus 6.5%.

Kensington's population is younger than the national pattern

Kensington's median age is 34 years, which is lower than Greater Melbourne's average of 37 and Australia's average of 38 years. Compared to Greater Melbourne, Kensington has a higher proportion of residents aged 25-34 (25.7%) but fewer residents aged 5-14 (7.7%). This concentration of 25-34 year-olds is significantly higher than the national average of 14.6%. Between the 2021 Census and the current period, the proportion of residents aged 25 to 34 has increased from 23.7% to 25.7%, while those aged 15 to 24 have risen from 10.4% to 11.5%. Conversely, the proportion of residents aged 45 to 54 has decreased from 12.4% to 11.2%, and the proportion of residents aged 0 to 4 has dropped from 5.9% to 4.8%. Population forecasts for Kensington in the year 2041 indicate substantial demographic changes, with the 45-54 age cohort projected to grow by 54%, adding 754 residents to reach a total of 2,147. Meanwhile, numbers in the 15-24 age range are expected to decrease by 6%.