Melbourne’s west is Australia’s fastest-growing area, based on population stats.
Melbourne’s western suburbs have emerged as Australia’s fastest-growing region with the area’s population forecast to reach a massive 1.46 million by 2046.
A new report from realestatecom.au’s research arm PropTrack and developer Stockland reveals affordable housing is a key driver behind the population growth, with 245,230 new residents moving to the west across a decade.
If the boom continues, within less than two decades the region’s population will surge past the number of people living in the CBDs of Prague in the Czech Republic, Milan in Italy and Birmingham in the UK, all of which are home to less than 1.4 million inhabitants.
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Infrastructure such as the West Gate Tunnel and Suburban Rail Loop has been credited with attracting more residents to Melbourne’s west. Picture: Tim Carrafa.
Melbourne’s west includes more than 60 suburbs such as Footscray, Sunshine, Altona, Williamstown, Werribee and Melton.
The region has an overall $729,000 median house price compared to Greater Melbourne’s$1.012m typical house price.
The report, based Australian Bureau of Statistics and PropTrack data, stated that Melbourne’s west “continues to attract strong buyer interest due to its relative affordability compared with Melbourne’s inner and eastern suburbs”.
Infrastructure projects such as the West Gate Tunnel and Suburban Rail Loop, along with significant employment opportunities provided by industrial and logistics companies based out west, were also credited as major drawcards.
A couple checking out homes in the Mt Atkinson estate in Truganina. Picture: Stockland.
According to ABS data released in March, Melbourne’s west was home to an estimated 980,300 residents in 2024-2025 – a 33 per cent increase on its population of 735,070 a decade earlier.
This growth put the region ahead of Australia’s second-largest population growth region, Melbourne’s south eastern suburbs with 958,772 inhabitants.
Separate figures from demographic data company Informed Decisions forecast that Melbourne’s west will be to home 1,469,301 residents by 2046.
A total 560,590 home are expected to be located in the region, compared to the current 372,989 residences.
PropTrack senior economist Anne Flaherty says detached houses dominate new development in Melbourne’s west, accounting for 64 per cent of listings and 60 per cent of buyer inquiries on realestate.com.au.
People exercising along the Altona esplanade in Melbourne’s west. Picture: NCA NewsWire/Andrew Henshaw.
PropTrack senior economist Anne Flaherty said Melbourne’s western corridor had seen a lot of new suburbs developed in recent years.
“It’s also more affordable than a lot of other regions in Melbourne, which is attracting also increased population growth,” Ms Flaherty said.
“It’s a region defined by families, with around 77 per cent of households classified as family households, and an average household size of 2.9 people, which is reinforcing demand for larger homes.”
The Mt Atkinson estate in Truganina will eventually be home to about 15,000 people. Picture: Stockland.
Stockland has several estates in the western suburbs including Mt Atkinson in Truganina which will be home to about 15,000 residents and 4000 homes once completed.
The developer’s communities development Victoria general manager, Ed Krushka, said Mt Atkinson’s 20-year-long build was roughly half-completed.
In February, Melton Council approved the estate’s future town centre design including retail near the proposed Mt Atkinson railway station.
The Victorian government is yet to commit major funding to the station but Mr Krushka said Stockland was advocating for the project to be built.
Several new suburbs have been developed in Melbourne’s west in recent decades, particularly in the Melton and Wyndham council areas. Picture: NewsWire/David Crosling.
In 2024, a petition signed by almost 4800 people was submitted to Victorian parliament calling for the station’s construction.
Mr Krushka added that two schools had opened in Mt Atkinson this year.
“We’ve got the two primary schools that have opened, one being a state primary and the other being a Catholic primary, and we’ve got existing kindergarten too that is run by Melton City Council,” he said.
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