New data from the Australia Bureau of Statistics shows Greater Bendigo's population grew by 1.8 per cent between 2018 and 2019, to hit an estimated population of 118093 last year.

Of the estimated 2052 extra residents, 490 were the result of natural increase.

More than 500 moved here from overseas, and 1056 came from within Australia.

Bendigo's growth was less than that of Victoria overall - which had a growth rate of 2.1 per cent, with Melbourne recording the largest growth of any capital city - but was greater than the national rate of 1.5 per cent.

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City of Greater Bendigo manager regional sustainable development, Trevor Budge, said the latest growth figures for the area continued a trend that had been observed for the past two decades.

The previous year saw growth of 1.7 per cent, and from 2016 to 2017 the population increased by 1.6 per cent.

Mr Budge said the city experienced a net gain in population from people moving from other parts of the country, with Geelong the only place to which the city lost some residents.

Much of Bendigo's attractiveness lay in its strong job growth, he said.

"There has been continuing growth in tourism, and tourism is a generator of a lot of jobs," Mr Budge said.

He said population growth itself also drove job creation, as more people meant the need for more services.

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More affordable house prices than Melbourne and some other large regional centres also played a part, Mr Budge said, as did educational facilities and services such as the new hospital.

RMIT researchers recently declared Bendigo one of the country's most liveable regional cities.

Ballarat's population growth was higher than Bendigo's at 2 per cent, and Mr Budge said that was likely due to the closer proximity to Melbourne and the government's commitment to faster trains between the city and Ballarat.

Population growth does present challenges that councils must address.

Population growth meant more new housing, Mr Budge said, and in Bendigo that meant an extra 700 to 800 homes were built each year.

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To deliver services and facilities to these new homes, Mr Budge said the City of Greater Bendigo was introducing a development contributions scheme, under which developers have to pay money towards the development of parks, cycle paths, and other similar amenities.

Introducing the overlay at Huntly is in the works, and the council has plans to roll it out at Maiden Gully and Marong, too.

Elsewhere in the region, Macedon Ranges, Mount Alexander and Campaspe shires also experienced population growth, of 1.7 per cent, 1.2 per cent and 0.1 per cent, respectively.

Mount Alexander Shire saw a natural decrease, but this was outweighed by migration to the area.

Meanwhile, Central Goldfields, Loddon, Buloke and Gannawarra all saw their populations shrink by -0.2 per cent, -0.1 per cent, -1 per cent, and -0.7 per cent.

Those shires all gained new residents from overseas, but this was outweighed by natural decrease, or this in combination with people moving from the area.