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 is approximately 11,709 as of February 2026. This figure represents an increase of 964 people since the 2021 Census, which reported a population of 10,745. The change is inferred from the estimated resident population of 11,699 in June 2024 and an additional 70 validated new addresses since the Census date. This results in a population density ratio of 5,446 persons per square kilometer, placing Kensington in the top 10% of national locations assessed by AreaSearch, indicating high demand for land in the area. Kensington's growth rate of 9.0% since the census is within 0.9 percentage points of the national average (9.9%), reflecting competitive growth fundamentals. The primary driver of population growth was overseas migration, contributing approximately 73.5% of overall population gains during recent periods.

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, AreaSearch employs the VIC State Government's Regional/LGA projections released in 2023, adjusted using a method of weighted aggregation of population growth from LGA to SA2 levels. Growth rates by age group are applied across all areas for years 2032 to 2041. Based on demographic trends and the latest annual ERP population numbers, Kensington is projected to increase by 2,389 persons by 2041, reflecting a gain of 20.3% in total over the 17-year period.

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

Kensington has received approximately 234 dwelling approvals annually. Between financial years FY-21 and FY-25, a total of 1,170 homes were approved, with an additional 446 approved in FY-26 to date. Over these five years, an average of 0.1 people moved to the area per dwelling built, indicating that supply has been meeting or exceeding demand.

The average construction value of new properties is $503,000, suggesting developers are targeting the premium market segment. In FY-26, commercial approvals have reached $77.0 million, reflecting robust local business investment. Compared to Greater Melbourne, Kensington has seen 55.0% more building activity per person since FY-21. Recent development has been exclusively medium and high-density housing, appealing to downsizers, investors, and entry-level buyers. This shift contrasts with the current housing mix of 17.0% houses. The location has approximately 5865 people per dwelling approval, indicating an established market. According to AreaSearch's latest quarterly estimate, Kensington is projected to gain 2,379 residents by 2041.

With current construction levels, housing supply should meet demand adequately, creating favourable conditions for buyers and potentially enabling population growth that exceeds current forecasts.

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

Changes to local infrastructure significantly impact an area's performance. AreaSearch identified 36 projects potentially affecting the region. Notable initiatives include Younghusband Kensington, Assemble 402-444 Macaulay Road Build-to-Rent, West Melbourne Waterfront, and Flemington Housing Precinct Renewal (Various Sites). The following list details those most 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 an educated workforce with professional services well-represented. The unemployment rate in September 2025 was 6.8%, with estimated employment growth of 4.5% over the past year. As of that date, 7,627 residents were employed while the unemployment rate was 2.1% higher than Greater Melbourne's rate of 4.7%.

Workforce participation in Kensington was 80.5%, compared to Greater Melbourne's 71.0%. Census responses showed that 52.7% of residents worked from home, potentially influenced by Covid-19 lockdowns. Employment is concentrated in professional & technical (1.7 times the regional level), health care & social assistance, and education & training sectors. Construction employs just 4.3% of local workers, below Greater Melbourne's 9.7%.

Many residents may commute elsewhere for work based on Census data. Between September 2024 and September 2025, employment levels increased by 4.5%, labour force grew by 4.9%, leading to a rise in unemployment of 0.4 percentage points. In contrast, Greater Melbourne saw employment growth of 3.0% and unemployment increase by 0.3 percentage points over the same period. Jobs and Skills Australia's national employment forecasts from May-25 project overall employment growth of 6.6% over five years and 13.7% over ten years. Applying these projections to Kensington's employment mix suggests local employment could grow by 7.3% over five years and 14.7% over ten years, though these are simple extrapolations for illustrative purposes only.

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

Kensington SA2's median income among taxpayers was $67,191 in financial year 2023, according to latest ATO data aggregated by AreaSearch. This figure is significantly higher than Greater Melbourne's median income of $57,688 for the same period. The average income in Kensington SA2 was $84,514 in financial year 2023, compared to $75,164 in Greater Melbourne. Based on Wage Price Index growth of 8.25% since financial year 2023, current estimates for median and average incomes in Kensington SA2 would be approximately $72,734 and $91,486 respectively as of September 2025. The 2021 Census data shows that household, family, and personal incomes in Kensington rank highly nationally, between the 79th and 93rd percentiles. In terms of earnings bands, 31.5% of Kensington's community falls within the $1,500 - $2,999 bracket, with 36.0% earning more than $3,000 weekly. High housing costs consume 16.5% of income in Kensington, but strong earnings place disposable income at the 77th percentile nationally. 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

Kensington's dwelling structure, as per the latest Census, consisted of 17.2% houses and 82.8% other dwellings (semi-detached, apartments, 'other' dwellings). This compares to Melbourne metro's figures of 67.9% houses and 32.1% other dwellings. Home ownership in Kensington stood at 18.6%, with mortgaged dwellings at 31.2% and rented dwellings at 50.2%. The median monthly mortgage repayment was $2,162, above Melbourne metro's average of $2,000. The median weekly rent in Kensington was $416, compared to Melbourne metro's $390. Nationally, Kensington's mortgage repayments were 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 comprise 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, 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

Kensington's educational attainment is notably higher than national averages. Among residents aged 15 and above, 59.1% have university qualifications, compared to 30.4% nationally and 33.4% in Victoria. Bachelor degrees are the most common 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 at 8.5% and certificates at 8.8%.

Educational participation is 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 operational public transport stops offering a mix of lightrail and bus services. These are served by four distinct routes, facilitating 4,527 weekly passenger trips in total. The area's transport accessibility is deemed excellent, with residents typically residing just 197 meters from the nearest stop. Predominantly residential, most Kensington residents commute outward. Cars remain the primary mode of transportation at 54%, followed by train at 20% and cycling at 9%. Vehicle ownership averages 0.6 per dwelling, lower than the regional average.

According to the 2021 Census, 52.7% of residents work from home, which may be influenced by COVID-19 conditions. On average, service frequency across all routes is 646 trips per day, translating 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 closely match 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 in Kensington 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 are mental health issues affecting 10.6% of residents and asthma impacting 8.9%. A total of 71.7% of Kensington residents declare 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 11.0% of residents aged 65 and over (1,284 people), lower than the 15.1% in Greater Melbourne. Health outcomes among seniors present some challenges, ranking 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 is more culturally diverse than most local areas, 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% of its population. However, Buddhism is notably overrepresented compared to Greater Melbourne, making up 4.4% versus 4.2%.

The top three ancestry groups are English (21.6%), Australian (18.4%), and Other (11.7%). Some ethnic groups have notable divergences: Irish at 10.9% (versus regional 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 35 years, which is slightly younger than Greater Melbourne's 37 and the national average of 38. The percentage of residents aged 25-34 stands at 24.0%, higher than Greater Melbourne's but lower than the national average of 14.4%. The 5-14 age group makes up 8.0% of Kensington's population, which is less prevalent compared to Greater Melbourne. Between 2021 and present, the 15-24 age group has increased from 10.4% to 12.0%, while the 45-54 cohort has decreased from 12.4% to 11.4%. By 2041, population forecasts indicate that the 45-54 age group is projected to rise significantly by 733 people (55%), from 1,337 to 2,071. Conversely, the 15-24 cohort is not expected to grow at all by 2041.