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 approximately 3,986 as of May 2026, a decrease of 22 people from the 2021 Census figure of 4,008. This decline represents a 0.5% change since the census date. The estimated resident population of 3,986 in June 2025, along with 36 validated new addresses since the Census, supports this inference. Otway's population density is 2.6 persons per square kilometer. While experiencing a 0.5% decline since the 2021 census, Otway performed better than its SA3 area (-1.6%). Overseas migration was the primary driver of population growth in 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 Victoria's State Government Regional/LGA projections from 2023, adjusted using weighted aggregation methods 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 111 persons to 2041 based on the latest annual ERP population numbers, reflecting a total increase of 2.5% over the 16-year period.

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 29 approved so far in FY-26. The average population increase per dwelling built over these years is 0.7 people annually.

This indicates that new supply has kept pace with or exceeded demand, providing ample buyer choice and creating capacity for population growth beyond current forecasts. The average construction cost value of new properties is $563,000, suggesting that 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 Rest of Vic., Otway records 116.0% more construction activity per person, creating greater choice for buyers.

However, building activity has slowed in recent years. New building activity 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 99 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 27thth percentile nationally

Changes to local infrastructure significantly affect an area's performance. AreaSearch has identified one major project likely impacting this area: Colac Water Pipeline Upgrade, Eden Project Anglesea, Telstra InfraCo Intercity Fibre Network, and Additional VLocity Trains are key projects, with the following providing more detail on 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.

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

Otway has a well-educated workforce with prominent tourism and hospitality sectors. Its unemployment rate is 1.8%. As of December 2025, it has 1,935 residents in work, an unemployment rate of 1.9% below Regional Vic.'s 3.7%, but workforce participation is lower at 56.5%.

A high 25.4% of residents work from home. Key industries are accommodation & food (strongly specialized), health care & social assistance (under-represented), and construction. Over the year to December 2025, labour force levels decreased by 6.6%, employment declined by 6.8%, leading to a rise in unemployment rate by 0.3 percentage points. Jobs and Skills Australia projects 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, though this is a simple extrapolation for illustrative purposes only.

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 ending June 2023 shows median income in Otway SA2 is $44,006 and average income is $56,842. This contrasts with Regional Vic., where median income is $50,954 and average income is $62,728. Based on Wage Price Index growth of 9.62% since financial year ending June 2023, estimated median income for Otway as of March 2026 would be approximately $48,239 and estimated average income would be around $62,310. Census 2021 data indicates household, family, and personal incomes in Otway fall between the 11th and 24th percentiles nationally. Income brackets show 28.6% of Otway's population earns between $800 and $1,499 annually, differing from metropolitan regions where the $1,500 to $2,999 bracket is predominant at 30.3%. Housing costs are relatively low with 87.8% of income retained, but total disposable income ranks at just the 15th percentile nationally. 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

In Otway, as per the latest Census evaluation, 91.0% of dwellings were houses, with the remaining 9.0% being semi-detached, apartments, or other types. This is similar to Regional Vic., where 90.1% were houses and 9.9% were other dwellings. Otway's home ownership rate was 53.2%, compared to Regional Vic.'s lower rate. The remaining dwellings in Otway were either mortgaged (26.8%) or rented (20.0%). The median monthly mortgage repayment in Otway was $1,387, below the Regional Vic. average of $1,430 and significantly lower than the national average of $1,863. Meanwhile, the median weekly rent figure in Otway was $285, which is also lower than the national average of $375.

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

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

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

Otway's residents aged 15+ have a higher proportion with university qualifications (29.9%) compared to the broader SA3 area (17.2%) and SA4 region (19.0%). This educational advantage is led by bachelor degrees at 19.3%, followed by postgraduate qualifications (6.9%) and graduate diplomas (3.7%). Vocational credentials are also prominent, with 37.2% of residents holding them, including advanced diplomas (12.8%) and certificates (24.4%). Educational participation is high, with 25.8% currently enrolled in formal education, comprising 9.2% in primary, 8.8% in secondary, and 2.5% in tertiary education.

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. The average distance to the nearest stop is 1033 meters. Most residents commute outward and use cars (79%) or walk (16%). Vehicle ownership averages 1.4 per dwelling. In 2021 Census data, 25.4% of residents work from home. Service frequency averages six trips daily across all routes, resulting in about two weekly trips per stop.

Service frequency averages 6 trips per day across all routes, equating to approximately 2 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 1,897 people.

This compares to 50.5% across Regional Vic., with a national average of 55.7%. The most common 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 Regional Vic.. Health outcomes among the working-age population are broadly typical. The area has 30.1% of residents aged 65 and over, totaling around 1,200 people, which is higher than the 23.9% in Regional 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 low cultural diversity, with 82.8% being citizens and 82.0% born in Australia. English was the language spoken at home by 92.4%. Christianity was the dominant religion at 34.1%, while Judaism was slightly overrepresented at 0.1% compared to Regional Vic's 0.1%.

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

Otway ranks among the oldest 10% of areas nationwide

The median age in Otway is 52 years, significantly higher than Regional Vic.'s average of 43 and well above the national norm of 38. The 65-74 age cohort is notably over-represented in Otway at 18.9%, compared to Regional Vic.'s average, while those aged 15-24 are under-represented at 7.5%. This concentration of the 65-74 age group is well above the national average of 9.4%. Between 2021 and present, the 75-84 age group has grown from 7.3% to 9.0%, while the 35-44 cohort increased from 9.8% to 11.3%. Conversely, the 55-64 cohort has declined from 19.3% to 17.1%, and the 45-54 group dropped from 14.3% to 12.6%. Population forecasts for Otway in 2041 indicate substantial demographic changes. The 25-34 age cohort is projected to grow by 26%, adding 93 residents to reach a total of 453. In contrast, population declines are projected for the 5-14 and 75-84 age cohorts.