The Australian Bureau Statistics' Data by Region released on Monday, shows there was an estimated population of 8119 people aged 20 to 24 in the Ballarat local government area as of June 30, 2014.

In comparison, Greater Bendigo - which had 6648 more residents than Ballarat - had a population of 7645 people aged 20 to 24. 

The second highest proportion of people living in Ballarat were 15 to 19 year olds with 7085 teenagers.

City of Ballarat chief executive officer Anthony Schinck said the city's growing youth population would start to shape the city and the figures would help the council plan for this.

"This tells us we need to make sure we are providing a lifestyle experience that is enriching for those people. We need to retain people as they grow up in Ballarat and the surrounding region," Mr Schinck said.

While there is not one particular reason behind the high proportion of 20 to 24 year olds in Ballarat, Federation University may contribute to the figure.

Federation University vice-chancellor David Battersby said research showed students studying at the university contributed to Ballarat's population. 

“Our research shows that most of our students who study at FedUni stay in the region,” Professor Battersby said.

 “We are very popular to students because of our high teaching quality and graduate satisfaction. Our students and graduates also add greatly to their regional communities.”

The ABS data shows Ballarat's population was 98,684 as of June 30, 2014, which was 1749 more people than the previous year.

Mr Schinck said the Ballarat West Growth Area, Ballarat Western Link Road and Ballarat West Employment Zone would accommodate the city's growing population.

He said future planning was at the forefront of the council to ensure Ballarat remained a major regional hub in Western Victoria.

"From a council perspective it's important we put in an enormous amount of planning for the city's future and we don’t suffer like other cities. We have the opportunity to get this right and retain the character and qualities of a regional city that makes it attractive for people to live," he said.

"We need to think of ourselves as a capital city. Ballarat does not only serve its own community, it's a major regional hub for Western Victoria." 

The ABS data revealed Ballarat's median age slightly increased over the five year period from 2009 to 2013.

As of June 30, 2014, it was 37.1 years of age which is lower than Horsham (41 years), Moorabool (39.4 years), Hepburn (47.1 years) and Golden Plains (39.1 years).

Mr Schinck said the figures told the council people were returning to live in Ballarat from 35 years of age and onwards.

He said people in this demograph were attracted to the city's education and health services, family lifestyle and close proximity to Melbourne.

The number of building approvals for new homes in Ballarat decreased over a three year period, according to the data.

Building approvals for new private sector houses decreased by 100 from 2011 to June 30, 2014. They peaked in 2010 with 1004 applications, but dropped to 882 in 2011, 835 in 2012 and 781 in 2013.

However, Master Builders Association of Victoria chief executive officer Radley de Silva said the figures were not discouraging.

"In Ballarat, at the end of April, we were encouraged by seeing 798 new building approvals for private sector houses, showing signs of growth compared to the figure of 652 for the same period last year," Mr de Silva said.

Mr Schinck said demand for construction in Ballarat was strong and would remain strong in the coming years.

"This financial year and next financial year we are likey to issue more building approvals than we have in the past," he said.

ABS' Data by Region draws on more than 400 data items to provide in-depth information for more than 2700 regions across Australia.