Otway

Population growth drivers in Otway are above average based on AreaSearch's ranking of recent, and medium to long-term trends

Otway's population was 4,022 as of February 2026, reflecting an increase of 14 people since the 2021 Census which reported a population of 4,008. This change is inferred from ABS estimated resident population of 3,957 in June 2024 and an additional 46 validated new addresses since the Census date. The population density was 2.7 persons per square kilometer. Over the past decade ending 2021, Otway had a compound annual growth rate of 1.2%, outpacing its SA3 area. Overseas migration contributed approximately 88.2% of overall population gains during recent periods. AreaSearch uses ABS/Geoscience Australia projections for each SA2 area released in 2024 with 2022 as the base year, and Vic State Government's Regional/LGA projections from 2023 with adjustments made 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. Future population dynamics anticipate lower quartile growth outside capital cities, with Otway expected to increase by 108 persons to 2041 based on latest annual ERP population numbers, reflecting an increase of 0.8% in total over the 17 years.

Residential development activity is slightly higher than average within Otway when compared nationally

Otway has averaged approximately 42 new dwelling approvals annually. Over the past five financial years, from FY-21 to FY-25, a total of 212 homes were approved, with an additional 23 approved so far in FY-26. The average number of people moving to the area per year for each dwelling built over these five years is 0.7.

This indicates that new supply has been keeping pace with or exceeding demand, providing ample buyer choice and creating capacity for population growth beyond current forecasts. The average expected construction cost value of new properties is $563,000, suggesting developers are targeting the premium market segment with higher-end properties. In FY-26, $19.1 million in commercial approvals have been registered, demonstrating moderate levels of commercial development compared to residential activity. When compared to the Rest of Vic., Otway records 118.0% more construction activity per person, creating greater choice for buyers despite a recent slowdown in building activity.

New building activity in Otway shows that 97.0% are standalone homes and 3.0% are attached dwellings, maintaining the area's traditional low density character with a focus on family homes appealing to those seeking space. The location has approximately 131 people per dwelling approval, indicating a low density market. Looking ahead, Otway is expected to grow by 34 residents through to 2041, according to 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.

Otway has emerging levels of nearby infrastructure activity, ranking in the 26thth percentile nationally

Changes to local infrastructure significantly impact an area's performance. AreaSearch has identified one major project expected to affect this region: Colac Water Pipeline Upgrade, Eden Project Anglesea, Telstra InfraCo Intercity Fibre Network, and Additional VLocity Trains are key projects, with the following list highlighting those most relevant.

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

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The labour market in Otway shows considerable strength compared to most other Australian regions

Otway has an educated workforce with prominent tourism and hospitality sectors. The unemployment rate was 1.8% as of September 2025. There were 1,973 residents employed at this time, with an unemployment rate of 1.9% lower than Rest of Vic.'s 3.8%.

Workforce participation in Otway was 57.9%, compared to Rest of Vic.'s 61.4%. According to Census responses, 25.4% of residents worked from home. The key industries were accommodation & food (strongly specialized), health care & social assistance (under-represented at 11.6%), and construction. Over the year to September 2025, labour force levels decreased by 3.3%, employment declined by 3.7%, and unemployment rose by 0.4 percentage points.

Jobs and Skills Australia forecasts national employment growth of 6.6% over five years and 13.7% over ten years. Applying these projections to Otway's employment mix suggests local employment should increase by 6.0% over five years and 12.6% over ten years, based on a simple weighting extrapolation for illustrative purposes.

Income metrics place the area in the bottom 10% of locations nationally according to AreaSearch analysis

AreaSearch's latest postcode level ATO data for financial year 2023 shows that Otway SA2 has lower income compared to national averages. The median income is $44,006 and the average income is $56,842. This contrasts with Rest of Vic.'s median income of $50,954 and average income of $62,728. Based on Wage Price Index growth of 8.25% since financial year 2023, estimated incomes as of September 2025 would be approximately $47,636 (median) and $61,531 (average). Census 2021 income data indicates that Otway's household, family, and personal incomes fall between the 11th and 24th percentiles nationally. Income brackets show that 28.6% of Otway's population (1,150 individuals) earn within the $800 - $1,499 range, differing from metropolitan regions where the $1,500 - $2,999 category is predominant at 30.3%. Despite modest housing costs with 87.8% of income retained, total disposable income ranks at just the 15th percentile nationally, and Otway's SEIFA income ranking places it in the 5th decile.

Otway is characterized by a predominantly suburban housing profile, with above-average rates of outright home ownership

Otway's dwelling structures, as per the latest Census, were 91.0% houses and 9.0% other dwellings (semi-detached, apartments, 'other' dwellings), compared to Non-Metro Vic.'s 90.1% houses and 9.9% other dwellings. Home ownership in Otway was 53.2%, with mortgaged dwellings at 26.8% and rented ones at 20.0%. The median monthly mortgage repayment was $1,387, lower than Non-Metro Vic.'s average of $1,430. The median weekly rent figure in Otway was $285, matching Non-Metro Vic.'s figure. Nationally, Otway's mortgage repayments were significantly lower at $1,387 compared to the Australian average of $1,863, while rents were substantially below the national figure of $375.

Otway features high concentrations of lone person households, with a lower-than-average median household size

Family households comprise 62.0% of all households, including 18.3% couples with children, 34.4% couples without children, and 8.7% single parent families. Non-family households account for the remaining 38.0%, with lone person households at 35.3% and group households comprising 2.7%. The median household size is 2.1 people, smaller than the Rest of Vic. average of 2.4.

Educational attainment in Otway aligns closely with national averages, showing typical qualification patterns and performance metrics

Otway's educational attainment is notably high, with 29.9% of residents aged 15+ possessing university qualifications, compared to 17.2% in the broader SA3 area and 19.0% in the SA4 region. The most common university qualification is a bachelor degree, held by 19.3% of residents, followed by postgraduate qualifications (6.9%) and graduate diplomas (3.7%). Vocational credentials are also prevalent, with 37.2% of residents aged 15+ holding such qualifications, including advanced diplomas (12.8%) and certificates (24.4%). Educational participation is significantly high in Otway, with 25.8% of residents currently enrolled in formal education, comprising primary education (9.2%), secondary education (8.8%), and tertiary education (2.5%).

Educational participation is notably high, with 25.8% of residents currently enrolled in formal education. This includes 9.2% in primary education, 8.8% in secondary education, and 2.5% pursuing tertiary education.

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

Otway has 18 active public transport stops serviced by two routes offering 46 weekly passenger trips. Residents have limited accessibility to these stops, averaging 1033 meters from the nearest one. Most residents commute outward due to its residential nature. Cars are the dominant mode of transport at 79%, with 16% walking. On average, there are 1.4 vehicles per dwelling. According to the 2021 Census, 25.4% of residents work from home, which may be influenced by COVID-19 conditions.

The service frequency averages six trips per day across all routes, resulting in approximately two weekly trips per individual stop.

The level of general health in Otway is notably higher than the national average with both young and old age cohorts seeing low prevalence of common health conditions

Otway demonstrates above-average health outcomes based on AreaSearch's assessment of mortality rates and chronic condition prevalence. Both young and old age cohorts show low prevalence of common health conditions. The rate of private health cover is very low at approximately 48% of the total population, which consists of around 1,914 people.

This compares to 50.5% across Rest of Vic., with a national average of 55.7%. The most prevalent medical conditions in the area are arthritis and mental health issues, impacting 9.5% and 7.7% of residents respectively. Meanwhile, 68.5% of residents declare themselves completely clear of medical ailments, compared to 63.4% across Rest of Vic.. Health outcomes among the working-age population are broadly typical. The area has 28.7% of residents aged 65 and over, totaling around 1,155 people, which is higher than the 23.9% in Rest of Vic.. Health outcomes among seniors are particularly strong, with national rankings even higher than those of the general population.

Otway ranks below the Australian average when compared to other local markets across a number of language and cultural background related metrics

Otway's population showed lower cultural diversity, with 82.8% being citizens, 82.0% born in Australia, and 92.4% speaking English only at home. Christianity was the predominant religion, at 34.1%. Judaism, at 0.1%, was slightly overrepresented compared to the regional average of 0.1%.

The top three ancestral groups were English (31.1%), Australian (23.9%), and Irish (13.0%). Scottish ancestry was notably higher in Otway at 10.2% versus 8.8% regionally, Dutch at 1.9% versus 1.7%, and French at 0.7% versus 0.3%.

Otway ranks among the oldest 10% of areas nationwide

Otway's median age is 51 years, which is significantly higher than the Rest of Vic. average of 43 years and considerably older than the Australian median of 38 years. Compared to the Rest of Vic., Otway has a notably over-represented 65-74 cohort (18.3% locally), while its 5-14 year-olds are under-represented (8.1%). This concentration in the 65-74 age group is well above the national average of 9.5%. According to post-2021 Census data, Otway's 35-44 age group has grown from 9.8% to 11.7%, while its 55-64 cohort has declined from 19.3% to 17.3%, and the 45-54 group has dropped from 14.3% to 12.6%. By 2041, Otway is expected to see notable shifts in its age composition, with the 25-34 group projected to grow by 23% (94 people), reaching 495 from 400. Meanwhile, population declines are projected for the 5-14 and 75-84 cohorts.