Australia population growth has hit a new milestone — 28 million people — and the connection between that growth and property demand has never been clearer.
The latest data from the Australian Bureau of Statistics tells a clear story about where this country is heading and why housing pressure is not going away.
How Australia reached 28 million people
Australia’s population has grown by 10 million people since 1995. That is a remarkable rate of growth for a country our size, and it is accelerating, not slowing down.
According to the ABS Population Clock, the most recent million people were added in less than three years. The ABS estimates that a new person is added to Australia’s population every one minute and 15 seconds.
To put that in perspective: back in 2003, Australia was not forecast to reach 26.4 million people until 2051. The ABS now estimates Australia’s total population will reach 30 million by 2031. That is a massive shift in the projections, and it is being driven almost entirely by migration.
Migration is the main driver of Australia’s population growth
Australia’s fertility rate has dropped to just 1.48, well below the 2.1 required for couples to replace themselves. In simple terms, Australians are having fewer children than at any point in recent history.
Despite that, the population keeps growing. According to ABS data, in the year to September 2025, net overseas migration accounted for 73% of Australia’s population growth, adding 311,000 people. Natural increase, meaning births minus deaths, accounted for just 27%.
The ABS demography director Beidar Cho says Australia’s growth rate has been consistent at about 1.6% over the past 20 years. That consistency is what makes this data so useful for long-term planning, including long-term property investment decisions.
Which states are seeing the strongest Australia population growth?
Not all of Australia is growing at the same rate. In the year to October 2025:
Western Australia recorded the fastest population growth at 2.2%. Queensland and Victoria both grew at 1.7%. The Northern Territory grew at 1.4% and the ACT at 1.3%. South Australia grew by 1.1% and Tasmania by just 0.3%.
Victoria’s 1.7% growth rate is particularly significant given Melbourne is already one of the most in-demand property markets in the country. More people arriving in Victoria means more demand for housing — in a market where supply is already under serious pressure.
Australia population growth and what it means for property demand
Every person added to Australia’s population needs somewhere to live. The vast majority of new arrivals enter the rental market first, putting direct and sustained pressure on an already undersupplied housing stock.
Australia is already short between 200,000 and 300,000 homes according to AMP Chief Economist Shane Oliver. The national vacancy rate sits at just 1.0% (a third of the 3% level considered balanced). And the pipeline of new homes being built is not keeping pace with the number of people arriving.
Add a population growing by one person every 75 seconds and you have the conditions for sustained long-term housing demand. That is not a short-term spike. It is a structural shift that has been building for decades and is projected to continue well into the 2030s.
For long-term property investors, population growth is one of the most reliable demand drivers there is. It does not move with interest rate cycles or media headlines. It moves with people, and the people keep coming.
What comes next – the 2026 Census
The next national Census will be conducted on the night of 11 August 2026. This will provide the most detailed and accurate snapshot of Australia’s changing population since 2021, covering where people live, how they live and what they need.
The Census data will take time to be processed and released, but it will sharpen the picture considerably for anyone making long-term decisions about Australian property.
We track developments like this so we can help families understand what they mean for their circumstances. If you would like to talk through how Australia’s population growth fits into a long-term property investment strategy for your family, send us a message.
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