Kensington (Vic.)
Statistical Area - sa2

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

Kensington's population, as of August 2025, is approximately 11,877. This figure reflects a growth of 1,132 people since the 2021 Census, which reported a population of 10,745. The increase was inferred from ABS data showing an estimated resident population of 11,699 in June 2024 and an additional 100 validated new addresses post-Census date. This results in a density ratio of 5,524 persons per square kilometer, placing Kensington in the top 10% of national locations assessed by AreaSearch. Kensington's growth rate of 10.5% since the 2021 Census exceeded both national (8.6%) and state averages, indicating it as a region leader for population growth during this period. Overseas migration contributed approximately 73.5% of overall population gains in recent periods.

AreaSearch uses ABS/Geoscience Australia projections released in 2024 with a base year of 2022 for each SA2 area, and VIC State Government's Regional/LGA projections from 2023 adjusted using weighted aggregation for areas not covered by the first data set. Future population trends project an above median growth for Australian statistical areas, with Kensington expected to expand by 2,389 persons to reach a total of approximately 14,266 people by 2041, reflecting an increase of about 18.6% over the 17-year period.

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

Kensington has annually approved around 78 dwellings for development. The Australian Bureau of Statistics (ABS) reports that between financial years 2019/20 (FY-20) and 2025/26 (FY-25), Kensington received a total of 390 approvals, with 2 approvals so far in FY-26. Over the past five financial years, an average of 0.1 person per year has moved to the area for each dwelling built. This suggests that new construction is meeting or exceeding demand, providing more housing options and enabling population growth.

The average expected construction cost value of new homes is $300,000, which is below the regional average, indicating more affordable housing options. In FY-26, Kensington has seen $77.0 million in commercial approvals, reflecting high levels of local commercial activity. Compared to Greater Melbourne, Kensington's construction activity is 33.0% above the regional average per person over the past five years. This indicates strong developer confidence in the area. Recent development has been entirely comprised of attached dwellings, promoting higher-density living and creating more affordable entry points for downsizers, investors, and first-home buyers. This shift represents a decrease from the current 17.0% houses in Kensington, suggesting decreasing availability of developable sites and reflecting changing lifestyles.

Kensington has approximately 5865 people per dwelling approval, indicating an established market. Future projections estimate that Kensington will add 2,211 residents by 2041. Existing development levels appear aligned with future requirements, maintaining stable market conditions without significant price pressures.

Kensington has very high levels of nearby infrastructure activity, ranking in the top 10% nationally

AreaSearch has identified a total of 40 projects likely to impact the area, significantly influencing its performance through changes to local infrastructure. Key projects include Younghusband Kensington, Metro Tunnel Project - Kensington Entrance, Assemble 402-444 Macaulay Road Build-to-Rent, and Holland Court Flemington Housing Development. The following list details those most relevant.

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

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

Kensington, Victoria, has a highly educated workforce with strong representation in professional services. Its unemployment rate was 6.5% as of June 2025, with an estimated employment growth of 6.3% over the previous year.

In June 2025, 7,802 residents were employed, with an unemployment rate of 1.9% higher than Greater Melbourne's rate of 4.6%. Workforce participation was 74.8%, compared to Greater Melbourne's 64.1%. Key industries for employment among residents are professional & technical (showing strong specialization), health care & social assistance, and education & training. Construction employs only 4.3% of local workers, below Greater Melbourne's 9.7%.

Many residents commute elsewhere for work based on Census data analysis. During the year to June 2025, employment levels increased by 6.3%, labour force by 7.1%, causing unemployment rate to rise by 0.7 percentage points. In comparison, Greater Melbourne saw employment grow by 3.5% and unemployment rise by 0.5 percentage points. State-level data from Sep-25 shows Victoria's employment grew by 1.08% year-on-year, with an unemployment rate of 4.7%, slightly higher than the national rate of 4.5%. National employment forecasts from May 2025 project growth of 6.6% over five years and 13.7% over ten years. Applying these projections to Kensington's employment mix suggests local growth of approximately 7.3% over five years and 14.7% over ten years, though this is a simplified extrapolation for illustrative purposes only.

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

AreaSearch's latest postcode level ATO data for financial year 2022 shows Kensington having extremely high national median assessed income of $64,507 and average income of $81,585. This contrasts with Greater Melbourne's median income of $54,892 and average income of $73,761. Based on Wage Price Index growth of 10.11% since financial year 2022, current estimates as of March 2025 would be approximately $71,029 (median) and $89,833 (average). According to the 2021 Census figures, Kensington's household, family, and personal incomes rank highly nationally, between the 79th and 93rd percentiles. Income analysis reveals that the largest segment comprises 31.5% earning $1,500 - $2,999 weekly (3,741 residents), similar to the surrounding region where this cohort represents 32.8%. Economic strength is evident through 36.0% of households achieving high weekly earnings exceeding $3,000, supporting elevated consumer spending. High housing costs consume 16.5% of income, but strong earnings place disposable income at the 77th percentile. The area's SEIFA income ranking places it in the 8th decile.

Kensington displays a diverse mix of dwelling types, with above-average rates of outright home ownership

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 comparison, Melbourne metro had 2.2% houses and 97.8% 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 was $2,162, higher than Melbourne metro's average of $1,962. The median weekly rent in Kensington was $416, compared to Melbourne metro's $396. Nationally, Kensington's mortgage repayments were significantly higher than the Australian average of $1,863, while rents were substantially above the national figure of $375.

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

Family households constitute 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 account for 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 larger than the Greater Melbourne average of 1.8.

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

Kensington's educational attainment exceeds national averages. Among residents aged 15+, 59.1% hold university qualifications, compared to Australia's 30.4% and Victoria's 33.4%. Bachelor degrees are the most prevalent at 35.5%, followed by postgraduate qualifications (18.3%) and graduate diplomas (5.3%). Vocational pathways account for 17.3% of qualifications, with advanced diplomas making up 8.5% and certificates 8.8%.

Current educational participation is high, at 28.0%, including 10.3% in tertiary education, 6.9% in primary education, and 4.8% in secondary education. Kensington's four schools have a combined enrollment of 793 students as of the latest data. The area demonstrates above-average socio-educational conditions with an ICSEA score of 1097. Educational provision is conventional, split between two primary and two secondary institutions.

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

Kensington has 24 active public transport stops. These include train, lightrail, and bus services. Five routes operate in total, serving 4,047 weekly passenger trips.

Residents' proximity to transport is excellent, with an average distance of 197 meters to the nearest stop. Daily service frequency averages 578 trips across all routes, equating to around 168 weekly trips per individual stop.

The level of general health in Kensington is notably higher than the national average with prevalence of common health conditions low among the general population though higher than the nation's average across older, at risk cohorts

Kensington shows better-than-average health outcomes with lower prevalence of common conditions among its general population compared to national averages but higher among older, at-risk groups. Approximately 61% (7,221 people) have private health cover, exceeding Greater Melbourne's 56.0%. Nationally, the average is 55.3%.

Mental health issues and asthma are the most common conditions in Kensington, affecting 10.6% and 8.9% respectively. A total of 71.7% report no medical ailments, compared to Greater Melbourne's 79.8%. The area has 10.6% (1,263 people) aged 65 and over, higher than Greater Melbourne's 6.8%. Health outcomes among seniors require more attention 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 was found to be more culturally diverse compared to most local markets, with 32.2% born overseas and 25.7% speaking a language other than English at home. Christianity was the predominant religion in Kensington, accounting for 29.0% of its population. However, Buddhism showed significant overrepresentation, comprising 4.4% compared to Greater Melbourne's 7.0%.

In terms of ancestry (country of birth of parents), the top three groups were English at 21.6%, Australian at 18.4%, and Other at 11.7%. Notably, Irish ancestry was higher in Kensington at 10.9% compared to the regional average of 6.6%, while Vietnamese was at 2.3% (regional: 2.0%) and Chinese was lower at 7.5% (regional: 19.1%).

Kensington's population is younger than the national pattern

Kensington's median age is 35 years, which is slightly younger than Greater Melbourne's 37 and somewhat younger than the national average of 38 years. The 25-34 age group comprises 24.4%, higher than Greater Melbourne's percentage, while the 5-14 cohort makes up 8.1%. This concentration in the 25-34 age group is significantly above the national average of 14.5%. Between 2021 and now, the 15 to 24 age group has increased from 10.4% to 11.8%, while the 45 to 54 cohort has decreased from 12.4% to 11.4%. By 2041, population forecasts indicate significant demographic shifts in Kensington. The 45-54 age group is projected to rise substantially by 714 people (53%), from 1,356 to 2,071. Conversely, the 15-24 cohort is expected to grow modestly by only 7 people (1%).