The data reveals the population in the Warrnambool local government area increased from 33,655 in 2016 to 35,406 in 2021.

The small jump surprised long-serving Warrnambool real estate agent Mark Wilson.

"It's surprising because the growth has been quite staggering in the past two years," Mr Wilson said.

He said you only had to look around the city to see an array of new houses in a number of subdivisions.

Warrnambool mayor Vicki Jellie said it was important to note the COVID-19 pandemic had a significant impact on the population count.

"It is perhaps a little surprising given the frenetic pace of housing construction we've witnessed over the past 18 months," Cr Jellie said.

"It's possible that in the year since the Census the population has grown at a faster rate again.

"At the 2016 Census considerable effort was made to include residents who held temporary skill shortage visas. As these workers returned home, COVID restrictions meant they could not re-enter Australia and nor could employers recruit new workers through the short-term visa system because of international border closures.

"We've still had overall population growth of more than five per cent between the Census years of 2016 and 2021. The annual growth of more than one per cent has been a consistent trend for over a decade now."

Cr Jellie said she believed the increase may be higher in coming years.

"Based on the housing growth we can speculate the growth rate might be faster," she said.

"We have discovered that many jobs can be done remotely so that makes moving to regional areas attractive for city-dwellers who are perhaps more likely to consider a seachange or treechange."

Cr Jellie said she was aware some people were struggling to buy a home.

"We know that for some, buying and/or renting a home has become a challenge," she said.

"On the positive side we have seen a strong response from the construction industry over the past 18 months with a huge increase in the number of homes built.

"Developers are also responding to the need for housing diversity and it's great to see more apartments becoming available - not everyone needs or wants a large home on a large block.

"The Victorian government has committed $25 million to build more social housing in Warrnambool and we are seeing homes from that project start to come on line."

Cr Jellie said manageable growth made it easier for councils to ensure the needs of all residents were met.

"Super-fast growth is not always the best kind of growth for a city," she said.

"We want to ensure that wherever you live in Warrnambool you feel part of the community.

"The community, through the Warrnambool 2040 plan wants to ensure that by 2040 all daily destinations (work, school, shopping, recreation, health services) are all accessible in less than 20 minutes by sustainable travel. If a city grows too quickly it can lose touch with those important aspirations."

South West Coast MP Roma Britnell said she had dozens of calls from people struggling to find a home in the city.

"People struggling to get a home is a massive issue," she said.

"That flows on to access to labour and businesses struggling to get staff."

One couple delighted to call Warrnambool home is Dennis and Dorothy Murphy.

The retired couple moved to the city 12 months ago.

Mr Murphy, 72, said the couple originally decided to retire in Indented Head on the Bellarine Peninsula.

"We built a home there and we really enjoyed that for the first four years," Mr Murphy said.

"It was lovely and peaceful and quiet and about one-and-a-half hours from Melbourne."

Mr Murphy said the couple began to notice a change in the relaxed vibe of the town.

"It started getting a massive population influx," Mr Murphy said.

"One day we were walking on the beach there and I said to my wife 'this beach is more like St Kilda Beach than St Kilda Beach is'."

The couple decided to move to a quieter seaside city.

Mr Murphy said he had great memories of attending Warrnambool's May Racing Carnival.

"I first came down for the carnival with a mate in 1971," he said.

The two rented a bungalow with a leaking roof and it rained the whole week of the carnival, but that didn't stop Mr Murphy from attending the event for the next two decades.

"When we decided to move I said 'we'll go and have a look down this way'," he said.

The couple were lucky to secure a block in the Logan's Beach Coastal Village.

Mr Murphy said they didn't know anyone but had been amazed at how easily it was to make friends.

"We've loved every single second of it," he said.

Mr Murphy has joined the Warrnambool Golf Club and walks the couple's kelpie Coco every morning.

"The difference in people's attitudes is huge," he said.

"You pass a person and they smile or say hello - that's very significant for us."

Mr Murphy said cleanliness of the city streets and shops and good customer service had also impressed them.

The couple has also been pleased with the high level of healthcare available.

"It's a fantastic place to live," he said.

"If there is no need for people to travel to Melbourne more than a handful of times a year, it's the perfect option."

Moyne Shire Council's population increased from 16,495 in 2016 to 17,374 in 2021.

Corangamite Shire Council's population increased from 16,051 in 2016 to 16,115 in 2021.

Mayor Ruth Gstrein said she was surprised with the small change.

"In saying that the Census is a snapshot and anecdotally we are seeing strong demand for housing in Corangamite Shire," she said.

Cr Gstrein said she believed some people may have bought houses but were not using them as their primary residence.

She said there was also a lack of housing options in the shire.

"We know there is strong demand for vacant land for building," Cr Gstrein said.

She said the council was also advocating for the process of rezoning land to be fast tracked. "The process can take between 12 and 18 months," she said.

The data also showed 31 per cent of Warrnambool residents paid 30 per cent or more of their household income on rent.

A property is deemed affordable if the rent is less than 30 per cent of the tenant's income.

Warrnambool is made up of 66.5 per cent family households, 30.2 per cent single or lone person homes and 3.2 per cent group households.

More than 35 per cent of homes are owned outright, which is higher than the state average of 32.2 per cent.

Just over 30 per cent of homes are owned with a mortgage, while 28 per cent are rented.

When it comes to religion, the majority of respondents (15,303) said they had no religious beliefs, while 9450 said they were Catholic.

More than 2300 people selected Anglican, while 1470 selected Presbyterian or Reformed.

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