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Demographics

Although Victoria's net interstate migration has fluctuated, the population of the Melbourne statistical division has grown by about 70,000 people a year since 2005. Melbourne has now attracted the largest proportion of international overseas immigrants (48,000) finding it outpacing Sydney's international migrant intake on percentage, as well as having strong interstate migration from Sydney and other capitals due to more affordable housing and cost of living.

In recent years, Melton, Wyndham and Casey, part of the Melbourne statistical division, have recorded the highest growth rate of all local government areas in Australia. Melbourne is on track to overtake Sydney in population between 2028 and 2030.

After a trend of declining population density since World War II, the city has seen increased density in the inner and western suburbs, aided in part by Victorian Government planning, such as Postcode 3000 and Melbourne 2030, which have aimed to curtail urban sprawl. As of 2018, the CBD is the most densely populated area in Australia with more than 19,000 residents per square kilometre, and the inner city suburbs of Carlton, South Yarra, Fitzroy and Collingwood make up Victoria's top five.