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 around 11,793 as of Nov 2025. This reflects an increase of 1,048 people 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 60 validated new addresses since the Census date. Kensington's population equates to a density ratio of 5,485 persons per square kilometer, which ranks it in the top 10% of national locations assessed by AreaSearch. Kensington's growth rate of 9.8% since the 2021 census exceeds both the national average (8.9%) and state average. Overseas migration contributed approximately 73.5% of overall population gains during recent periods.

AreaSearch is adopting ABS/Geoscience Australia projections for each SA2 area, released in 2024 with 2022 as the base year. For areas not covered by this data, AreaSearch uses VIC State Government's Regional/LGA projections released in 2023, adjusted employing 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. By 2041, Kensington is projected to increase by 2,389 persons based on the latest annual ERP population numbers, reflecting a gain of 19.5% 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 approximately 234 dwelling approvals annually. Over the past five financial years, from FY-21 to FY-25, around 1,170 homes were approved, with an additional 446 approved so far in FY-26. The average population growth per dwelling built over these years was 0.1 people annually.

This indicates that supply is meeting or exceeding demand, offering greater buyer choice and supporting potential population growth above projections. New properties are constructed at an average expected cost of $503,000, targeting the premium market segment with higher-end properties. In FY-26, there have been $77.0 million in commercial approvals, suggesting robust local business investment. Compared to Greater Melbourne, Kensington has 55.0% more building activity per person, offering buyers greater choice. However, building activity has slowed in recent years. This activity is substantially higher than the national average, indicating strong developer confidence in the location. Recent development in Kensington has been entirely comprised of medium and high-density housing.

This trend provides accessible entry options appealing to downsizers, investors, and entry-level buyers. This marks a significant change from the current housing mix, which is currently 17.0% houses. This shift reflects reduced availability of development sites and addresses shifting lifestyle demands and affordability requirements. Kensington has approximately 5865 people per dwelling approval, indicating an established market. Population forecasts estimate Kensington will gain 2,295 residents by 2041 (based on 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

Changes to local infrastructure significantly impact an area's performance. AreaSearch identified 37 projects potentially affecting the region. Major initiatives include Younghusband Kensington, Flemington Housing Precinct Renewal (Various Sites), Assemble 402-444 Macaulay Road Build-to-Rent, and Holland Court Flemington Housing 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 6.8% last year, with an estimated employment growth of 4.5%.

As of September 2025, 7,627 residents are employed, with an unemployment rate of 2.1% higher than Greater Melbourne's rate of 4.7%. Workforce participation in Kensington is 74.8%, compared to Greater Melbourne's 64.1%. The area's employment is concentrated in professional & technical, health care & social assistance, and education & training sectors. Professional & technical services have a particularly strong presence, employing 1.7 times the regional average.

However, construction employs only 4.3% of local workers, lower than Greater Melbourne's 9.7%. While there are employment opportunities in Kensington, many residents commute elsewhere for work. Between September 2024 and September 2025, employment levels increased by 4.5%, labour force grew by 4.9%, and unemployment rose by 0.4 percentage points. In contrast, Greater Melbourne saw employment rise by 3.0%, labour force grow by 3.3%, and unemployment increase by 0.3 percentage points. State-level data from November 25 shows Victoria's employment grew by 1.13% year-on-year, with an unemployment rate of 4.7%. Nationally, the unemployment rate was 4.3%. Jobs and Skills Australia's national employment forecasts indicate a 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 increase by 7.3% over five years and 14.7% over ten years, although this is a simplified extrapolation for illustrative purposes.

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

The Kensington SA2 has an exceptionally high national income level according to AreaSearch's aggregation of latest ATO data for financial year 2022. The median income among taxpayers in Kensington SA2 is $64,507, with the average income being $81,585. These figures compare to Greater Melbourne's median and average incomes of $54,892 and $73,761 respectively. Based on a 12.16% growth in wages as per the Wage Price Index since financial year 2022, estimated current incomes for Kensington SA2 are approximately $72,351 (median) and $91,506 (average) by September 2025. The 2021 Census data shows that household, family, and personal incomes in Kensington SA2 rank highly nationally, between the 79th and 93rd percentiles. A significant portion of the community, 31.5% or 3,714 individuals, falls within the $1,500 - 2,999 weekly earnings band, mirroring the surrounding region's 32.8%. Higher earners make up a substantial presence with 36.0% exceeding $3,000 weekly, indicating strong purchasing power in the area. High housing costs consume 16.5% of income, 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 above-average rates of outright home ownership

Kensington's dwelling structures in the latest Census showed 17.2% houses and 82.8% other dwellings (semi-detached, apartments, 'other' dwellings). 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, exceeding Melbourne metro's average of $1,962. Median weekly rent in Kensington was $416, compared to Melbourne metro's $396. Nationally, Kensington's mortgage repayments were higher at $2,162 against 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 higher-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 make up 43.7%, consisting of 34.9% lone person households and 8.8% group households. The median household size is 2.1 people, 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 is notably higher than national averages. Among residents aged 15 and above, 59.1% possess 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%, 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, 6.9% in primary, 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 24 active public transport stops. These include train, light rail, and bus services. Five routes operate in total, providing 4047 weekly passenger trips.

Residents have excellent transport accessibility, 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. However, among older and at-risk cohorts, condition prevalence is higher. Private health cover is exceptionally high in Kensington, with 61% of the total population (7,170 people) having it, compared to 56.0% across Greater Melbourne and a national average of 55.3%.

Mental health issues and asthma are the most common conditions, affecting 10.6% and 8.9% of residents respectively. 71.7% of Kensington residents report no medical ailments, compared to 79.8% across Greater Melbourne. Kensington has a higher proportion of seniors aged 65 and over at 10.6% (1,254 people), compared to 6.8% in Greater Melbourne. 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 showed higher overseas birth rates at 32.2%, compared to most local markets, with 25.7% speaking languages other than English at home. Christianity was the predominant religion in Kensington at 29.0%. Buddhism, however, was overrepresented at 4.4%, exceeding Greater Melbourne's average of 7.0%.

The top three ancestry groups were English (21.6%), Australian (18.4%), and Other (11.7%). Notably, Irish ancestry was higher in Kensington at 10.9% compared to the regional average of 6.6%, Vietnamese was slightly higher at 2.3% versus 2.0%, while Chinese ancestry was lower at 7.5% against Greater Melbourne's 19.1%.

Kensington's population is younger than the national pattern

Kensington's median age is 35 years, slightly younger than Greater Melbourne's 37 and the national average of 38. The 25-34 age group makes up 24.4%, higher than Greater Melbourne but lower than the national 14.5%. The 5-14 cohort is less prevalent at 8.1%. Between 2021 and present, the 15-24 age group has increased from 10.4% to 11.8%, while the 45-54 cohort has decreased from 12.4% to 11.4%. By 2041, population forecasts indicate significant changes: the 45-54 age group is projected to rise by 724 people (54%) from 1,346 to 2,071, while the 15-24 cohort grows modestly by 1% (17 people).