‘Immense strain’: Hobart’s cheap rents on the fringe

New rental data reveals the best suburbs for affordability in greater Hobart — and others that will stress the hip pocket. How does your suburb fare>>

GREATER Hobart house renters need a $600 per week budget to live in the city’s 10 cheapest inner-ring suburbs.

PropTrack’s latest rental report has revealed Lutana and Moonah are the southernmost capital’s most affordable suburbs, with a median rental ask of $500 per week.

South Hobart, Lindisfarne, West Hobart, Bellerive and the suburb of Hobart have rents ranging from $578 to $595.

Then Lenah Valley, New Town and North Hobart round out the 10 at $600 per week, which was more expensive than inner-ring suburbs in Brisbane, Melbourne and Adelaide.

To find something more affordable, the data showed a move further out of the city was necessary.

The best bet for a lower-priced rental outer-ring house was in Primrose Sands, where the median is $395 per week. That is about a 40-minute drive from Hobart, but it is possible to find a two-bedroom house with water views for $375 per week.

The next most affordable areas in this ring were Bridgewater or New Norfolk (both $440), Dodges Ferry ($475) and Claremont ($500).

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This two-bedroom Primrose Sands house with water views is asking $375 per week, with Kate Storey Realty. Picture: realestate.com.au

The views, at Primrose Sands. Picture: realestate.com.au

PropTrack senior economist Paul Ryan said there had been a big shift in Hobart over the past decade with it becoming increasingly expensive.

“In not even one generation, Hobart has gone from the most affordable to second least affordable city,” Mr Ryan said.

“Even the ‘cheap’ suburbs for renters in this report, the prices are quite astounding.

“For those looking for affordability in Hobart, the data directs you to the north and northeast of the city, or the outer-ring.

“There will be geographical or socio-economic reasons why one suburb is cheaper than the next. But given the rental crisis, people will want to know where the most affordable areas are.”

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Paul Ryan is a senior economist at PropTrack.

Mr Ryan said the median rent in Hobart had risen slightly, 2 per cent, in the past year with the median dwelling price $510 per week.

“This is still higher than neighbouring cities like Melbourne or Adelaide,” he said.

Hobart’s vacancy rate has increased from well below 1 per cent to about 1.5 per cent. Mr Ryan said vacancies were now above pre-pandemic levels.

“High rents in Hobart could incentivise investors to bring more rental properties to market,” he said.

“There may also be a little less demand, with recent population growth in Tasmania lower than what we have been seeing.”

This three-bedroom house at No.425 Kaoota Rd, Allens Rivulet is listed with TPR Property at $350 per week. Picture: realestate.com.au

One-bedroom property at No.1/20 Kirby Ct, West Hobart is asking $340 per week (Downton Property). Picture: Supplied

Meanwhile, Suburbtrends’ September Rental Pain Index — which analyses metrics like rental price change, vacancy rates, advertised rentals, and affordability as a percentage of income — placed Launceston’s Invermay at No.6 nationwide among the most unaffordable suburbs.

Divided into ABS Statistical Area Level 2 (SA2) groupings, the report showed Hobart suburbs Bellerive-Rosny were the most challenged area for renters, followed by Lenah Valley-Mount Stuart, Claremont, Bridgewater-Gagebrook, Glenorchy, New Town and Kingston.

The research by Suburbtrends director Kent Lardner found some suburbs, such as Claremont, have a vacancy rate of just 0.49 per cent.

“Vacancy rates below 1 per cent show the immense strain on housing availability,” he said.

Suburbtrends founder Kent Lardner.

In Bridgewater-Gagebrook and Glenorchy, renters are allocating 40 per cent of their income to pay their rent.

“This type of financial stress is unbearable,” Mr Lardner said.

“The relentless climb in rent and plummeting vacancy rates are not just statistics but indicators of a quality of life that is rapidly deteriorating for renters.”