Nillumbik Infrastructure Projects, VIC

Nillumbik combines a service-based economy with active industrial and transport work

Economic base

Nillumbik’s economy is anchored in services, construction and locally oriented business activity. In 2021, health care and social assistance and construction each accounted for 13.9% of employed residents, followed by education and training at 11.2%, professional, scientific and technical services at 9.1%, and retail trade at 8.1%. Manufacturing accounted for 6%, while transport, postal and warehousing accounted for 3.2%. The business register recorded 6,295 registered businesses and 2,357 employing businesses in June 2025. Construction had 1,669 registered businesses, professional services 1,065 and health care and social assistance 519, indicating a broad small-business and service base.

The resident population was 63,797 in 2025, increasing by 269 people, or 0.4%. Natural increase contributed 223 people and net overseas migration 338, while net internal migration was -292. The labour force was 39,338 in 2026-Q1, with 821 unemployed people and an unemployment rate of 2.1%. These figures describe a municipality with modest population growth and a relatively tight current labour market. They also sit alongside a substantial resident workforce in health, construction, education and professional services, giving local activity a strong service and built-environment character. That combination supports a diverse base, although its performance remains connected to household demand, service needs and construction conditions.

Project program

The council’s current project work is concentrated in industrial and transport activity. Transport work is also completed work, so the direction is from finished transport activity to work now under way in industrial and transport areas. The largest priced active or proposed work is in industrial and transport categories at a smaller scale. This describes the composition and direction of the program, rather than local economic output. Industrial work relates to premises and operating space, while transport work relates to movement and access; together, those categories give the program a built-environment and connectivity emphasis.

Residential construction activity provides a separate measure of work approved to proceed. In the 12 months to July 2026, 99 dwellings were approved, comprising 64 new houses and 35 townhouses, apartments and other dwellings. The value of residential building work approved was $118m. Non-residential building approvals totalled $32.2m in the 12 months to 2026-06, at 1.02× the council’s own three-year average. Transport work is shared with other councils, linking this program to a wider movement network. The approvals measures add a current construction signal to the longer-direction picture from active, proposed and completed work.

Economic connections

Industrial and transport activity aligns with Nillumbik’s existing construction, manufacturing, wholesale and transport business base. Construction employed 13.9% of employed residents in 2021, while manufacturing employed 6%, and the June 2025 business register recorded 200 manufacturing businesses, 148 wholesale businesses and 198 transport, postal and warehousing businesses. Transport work shared with other councils could support access between local businesses and surrounding markets, while industrial work may support premises and operating capacity for production and distribution. These mechanisms are supported by the overlap between project types and the local economic structure, not measures of output. They also connect the council’s local business base with activity beyond its boundaries.

Residential and non-residential approvals provide construction activity that connects with the council’s large construction business base. The scale of approved residential work may sustain demand for trades and building services, while non-residential approvals at 1.02× the council’s own three-year average indicate activity slightly above that benchmark. Health care and social assistance and education and training are major employment industries, so service capacity is another connection to monitor as population changes. Current capacity includes 1 open hospital, 68 approved centre-based childcare services with 4,564 places, and 6 residential aged care homes with 575 places. These services provide capacity for daily needs and support participation in work and education.

Outlook

Housing delivery is the clearest forward pressure point. The state target is 6,500 net new dwellings from 2023 to 2051, equivalent to 232 homes a year. Dwellings approved since July 2023 totalled 330, equal to 46% of the yearly pace the target needs over July 2023 to July 2026. In the latest 12 months, approvals were 0.95× the council’s own three-year average. Together, these measures point to a housing program that is running below its required target pace and slightly below its recent local approval average. The two benchmarks serve different purposes: one tracks progress against the state target, while the other tracks the council’s recent approval pattern.

The near-term outlook will be shaped by the balance between modest population growth, construction capacity and the mix of industrial, transport and residential work. Population growth in 2025 was supported by natural increase and overseas migration, while internal migration reduced the total. The labour market was relatively tight in 2026-Q1, and construction is a large resident employment industry and business category. Indicators to follow are the housing target pace, dwelling approvals against the council’s own average, non-residential approval value, labour-market conditions, population components and the balance between active industrial and transport work and completed transport work. Together, these measures indicate whether service demand, construction activity and physical connectivity are moving in step.

For council and planning staff

The state housing target requires 232 homes a year from 2023 to 2051, and approvals since July 2023 were at 46% of the yearly pace the target needs over July 2023 to July 2026. Population was 63,797 in 2025, up 269 people or 0.4%; natural increase added 223 and overseas migration added 338, while internal migration was -292. Service capacity includes 1 open hospital, 68 approved centre-based childcare services and 4,564 childcare places, plus 6 residential aged care homes with 575 places. These figures frame housing delivery alongside changing demand for health, childcare and aged care services.

For buyers’ agents and investors

The 2021 housing profile was dominated by ownership: 48.2% of occupied private dwellings were owned with a mortgage, 40.9% were owned outright and 8.9% were rented. Average household size was 2.9 people and median age was 42. A relatively established resident base is reflected in the fact that 30.3% lived at a different address five years earlier. Median weekly household income was $2,476 and median weekly personal income was $962. The labour force participation rate was 68.3%, and the unemployment rate was 2.1% in 2026-Q1. New dwelling approvals in the latest 12 months comprised 64 houses and 35 townhouses, apartments and other dwellings, providing a mixed picture of housing form.

For builders and developers

In the 12 months to July 2026, 99 dwellings were approved: 64 new houses and 35 townhouses, apartments and other dwellings. The value of residential building work approved was $118m, and approvals were 0.95× the council’s own three-year average. Non-residential building approvals totalled $32.2m in the 12 months to 2026-06, at 1.02× the council’s own three-year average. The construction sector had 1,669 registered businesses and 746 employing businesses in June 2025, while construction accounted for 13.9% of employed residents in 2021. The figures place approved residential work alongside the local construction business base and non-residential activity.

Key takeaways

• Nillumbik’s economic base is service-led, with health care, construction, education, professional services and retail prominent in resident employment and business activity.
• Current project activity is concentrated in industrial and transport work, with transport activity shared across councils and completed transport work forming part of the program’s direction.
• Housing approvals are below the state target pace and slightly below the council’s own recent average, while non-residential approvals are slightly above that average.

Sources

• Health care and social assistance — ABS Census 2021
• Registered businesses — ABS Counts of Australian Businesses
• Estimated resident population — ABS Regional Population
• Unemployment rate — Small Area Labour Markets
• Construction — ABS Census 2021
• Education and training — ABS Census 2021
• Professional, scientific and technical services — ABS Census 2021
• Retail trade — ABS Census 2021
• Manufacturing — ABS Census 2021
• Transport, postal and warehousing — ABS Census 2021
• Employing businesses — ABS Counts of Australian Businesses
• Registered businesses, Construction — ABS Counts of Australian Businesses
• Registered businesses, Professional, Scientific and Technical Services — ABS Counts of Australian Businesses
• Registered businesses, Health Care and Social Assistance — ABS Counts of Australian Businesses
• Population change — ABS Regional Population
• Population change — ABS Regional Population
• Natural increase — ABS Regional Population
• Net internal migration — ABS Regional Population
• Net overseas migration — ABS Regional Population
• Labour force — Small Area Labour Markets
• Unemployed persons — Small Area Labour Markets
• Dwellings approved, latest 12 months — ABS Building Approvals
• Non-residential building approvals, latest 12 months — ABS Building Approvals
• New houses approved, latest 12 months — ABS Building Approvals
• Townhouses, apartments and other dwellings approved, latest 12 months — ABS Building Approvals
• Value of residential building work approved (new homes, alterations and additions), latest 12 months — ABS Building Approvals
• Non-residential building approvals versus this council's own three-year average, weighted by the value of those approvals — ABS Building Approvals
• Open public and private hospitals — AIHW MyHospitals
• Approved childcare places — ACECQA national register
• Residential aged care places — AIHW GEN aged care
• Registered businesses, Manufacturing — ABS Counts of Australian Businesses
• Registered businesses, Wholesale Trade — ABS Counts of Australian Businesses
• Registered businesses, Transport, Postal and Warehousing — ABS Counts of Australian Businesses
• Approved centre-based childcare services — ACECQA national register
• Residential aged care homes — AIHW GEN aged care
• Dwellings approved since July 2023 against the yearly pace the housing target needs (100% is on pace) — Plan for Victoria
• Dwellings approved versus this council's own three-year average — ABS Building Approvals
• Target: 6,500 net new dwellings from 2023 to 2051 (232 a year) — Plan for Victoria
• Dwellings approved since July 2023 — ABS Building Approvals
• Owned with a mortgage — ABS Census 2021
• Median age — ABS Census 2021
• Owned outright — ABS Census 2021
• Rented — ABS Census 2021
• Average household size — ABS Census 2021
• Lived at a different address 5 years ago — ABS Census 2021
• Median household income (weekly) — ABS Census 2021
• Median personal income (weekly) — ABS Census 2021
• Labour force participation rate — ABS Census 2021
• Employing businesses, Construction — ABS Counts of Australian Businesses