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 Vic's population is 11,877 as of Aug 2025. This shows a growth of 1,132 people since the 2021 Census, which reported a population of 10,745. The increase is inferred from ABS estimated resident population of 11,699 in June 2024 and an additional 100 validated new addresses post-Census. This results in a density ratio of 5,524 persons per square kilometer, placing Kensington among the top 10% of national locations assessed by AreaSearch. Kensington's 10.5% growth since the 2021 census exceeds both national (8.6%) and state averages, indicating strong population growth in the region. Overseas migration contributed approximately 73.5% of overall population gains recently.

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 VIC State Government's Regional/LGA projections from 2023 with adjustments made using weighted aggregation methods. Growth rates by age group are applied across all areas for years 2032 to 2041. Future trends project above median population growth, with Kensington expected to expand by 2,389 persons to 2041 based on latest numbers, reflecting an increase of 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 received approximately 234 dwelling approvals annually over the past five financial years, totalling 1,170 homes. As of FY26446 approvals have been recorded. On average, 0.1 new residents per year have arrived for each new home approved between FY21 and FY25. This indicates that new supply is meeting or exceeding demand, providing ample buyer choice and creating capacity for population growth beyond current forecasts.

The average expected construction cost value of new dwellings is $300,000, which is below the regional average, suggesting more affordable housing options for buyers. In FY26, $77.0 million in commercial approvals have been registered, indicating robust local business investment. Compared to Greater Melbourne, Kensington has recorded 55.0% more construction activity per person, offering buyers greater choice. However, construction activity has eased recently. This level is substantially higher than the national average, suggesting strong developer confidence in the location. Recent development in Kensington has been entirely comprised of townhouses or apartments, reflecting a notable shift from the area's existing housing stock (currently 17.0% houses). This focus on higher-density living creates more affordable entry points and suits downsizers, investors, and first-home buyers.

It also indicates decreasing availability of developable sites and reflects changing lifestyles and the need for more diverse, affordable housing options. With around 5865 people per dwelling approval, Kensington reflects a highly mature market. Looking ahead, Kensington is expected to grow by 2,211 residents through to 2041. 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 10% nationally

Changes to local infrastructure significantly influence an area's performance. AreaSearch identified 37 projects likely impacting the region. Notable initiatives include Younghusband Kensington, Assemble's 402-444 Macaulay Road Build-to-Rent project, Holland Court Flemington Housing Development, and West Melbourne Waterfront. The following list details those most relevant.

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

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Kensington has seen below average employment performance when compared to national benchmarks

Kensington Vic features highly educated workforce with professional services strongly represented. Unemployment rate is 6.5%, with estimated employment growth of 6.3% over past year as of June 2025.

Residents in work total 7802, unemployment rate is 1.9% above Greater Melbourne's rate of 4.6%. Workforce participation is high at 74.8%. Key industries are professional & technical (strongly specialized), health care & social assistance, and education & training. Construction employs only 4.3%, below Greater Melbourne's 9.7%.

Many residents commute elsewhere for work based on Census data. From June 2024 to June 2025, employment levels increased by 6.3% and labour force by 7.1%, causing unemployment rise by 0.7 percentage points. Comparing with Greater Melbourne: employment grew by 3.5%, labour force expanded by 4.0%, unemployment rose by 0.5 percentage points. National employment forecasts from Jobs and Skills Australia (May 2025) project growth of 6.6% over five years, 13.7% over ten years. Applying these projections to Kensington's employment mix suggests local growth of approximately 7.3% over five years, 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

AreaSearch's latest postcode level ATO data for financial year ending June 2022 shows median income in Kensington was $64,507 and average income was $81,585. This compares to Greater Melbourne's figures of a median income of $54,892 and an average income of $73,761. Based on Wage Price Index growth of 12.16% from July 2022 to September 2025, estimated current incomes are approximately $72,351 (median) and $91,506 (average). According to the 2021 Census, Kensington's household income ranks at the 84th percentile nationally. Income analysis reveals 31.5% of residents earn between $1,500 and $2,999 weekly, aligning with the surrounding region where this cohort represents 32.8%. High weekly earnings exceeding $3,000 are achieved by 36.0% of households, indicating strong consumer spending power despite high housing costs consuming 16.5% of income. Kensington's SEIFA income ranking places it in the 8th decile nationally.

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

Kensington's dwelling structures, as per the latest Census, consisted of 17.2% houses and 82.8% other dwellings (semi-detached, apartments, 'other' dwellings). This contrasts with Melbourne metro's figures of 2.2% houses and 97.8% other dwellings. Home ownership in Kensington stood 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. The median weekly rent in Kensington was $416, compared to Melbourne metro's $396. Nationally, Kensington's mortgage repayments were higher than the Australian average of $1,863, and rents were 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 make up 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, 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 residents aged 15+ have a higher proportion of university qualifications than national averages. Specifically, 59.1% hold such qualifications compared to Australia's 30.4% and Victoria's 33.4%. 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 making up 8.5% and certificates 8.8%.

Educational participation is high in Kensington, with 28.0% currently enrolled in formal education. This includes 10.3% in tertiary education, 6.9% in primary education, and 4.8% pursuing secondary education. The area's four schools combined have an enrollment of 793 students, with above-average socio-educational conditions indicated by an ICSEA score of 1097. Educational provision is 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

Transport analysis indicates 24 active stops in Kensington offering train, lightrail, and bus services. Five routes serve these stops, facilitating 4,047 weekly passenger trips. Residents enjoy excellent transport accessibility, with an average proximity of 197 meters to the nearest stop.

Daily service frequency averages 578 trips across all routes, translating to about 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, older and at-risk cohorts have higher rates. Approximately 61% of Kensington's total population (7,221 people) has private health cover, which is higher than Greater Melbourne's 56.0% and the national average of 55.3%.

Mental health issues affect 10.6% of residents, while asthma impacts 8.9%. Overall, 71.7% of residents report no medical ailments, compared to 79.8% in Greater Melbourne. Kensington has 10.6% of residents aged 65 and over (1,263 people), 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 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, however, is more prevalent here than across Greater Melbourne, making up 4.4% compared to 7.0%.

For ancestry, the top groups are English (21.6%, higher than the regional average of 16.1%), Australian (18.4%, higher than the regional average of 11.5%), and Other (11.7%, lower than the regional average of 17.1%). Notably, Irish ancestry is overrepresented at 10.9% compared to the regional average of 6.6%. Vietnamese and Chinese ancestries also show minor divergences with regional averages, at 2.3% versus 2.0% and 7.5% versus 19.1%, respectively.

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 makes up 24.4%, compared to Greater Melbourne's percentage, while the 5-14 cohort is less prevalent at 8.1%. This concentration in the 25-34 age group is well above the national average of 14.5%. Between 2021 and present, the 15 to 24 age group has grown from 10.4% to 11.8% 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 in Kensington. The 45-54 age cohort is projected to rise substantially by 714 people (53%), from 1,356 to 2,071. Meanwhile, the 15-24 cohort grows by a modest 1% (7 people).