Rentals Hobart: New report shows we’re the least affordable capital city in Australia

Most of Greater Hobart is now considered unaffordable, with new figures showing most renters pay more than 30% of their income just to have a roof over their head. TOP SUBURBS TO AVOID >>

TASMANIA’S housing woes have once again been laid bare, this time in a new national report revealing Hobart as far and away the worst capital city in the country for rental affordability — and the problem is growing.

The national rental affordability index has also shown regional Tasmania is increasingly suffering the effects of rising rents.

The report found Hobart was the only Australian capital city where the average rental household would be considered to be under rental stress, by paying more than 30 per cent of their total income if renting at the median rate.

Picture: Richard Jupe

Almost all parts of Greater Hobart were considered unaffordable, with small pockets moderately unaffordable.

There was a decline in affordability in Mount Nelson, and Glenorchy and New Town, but some improvement in South Hobart, Taroona and Lindisfarne.

Affordability worsened in most areas of regional Tasmania, with Launceston and Kings Meadows declining significantly, with Burnie and the East Coast also impacted.

Hobart’s rental affordability index figure was 87, considered “unaffordable”, with Greater Adelaide and the ACT both “moderately unaffordable”.

All other Australian capital cities are considered acceptable for rental affordability.

The measure, which ranks regions based on average incomes and median rents, has declined for Greater Hobart from 114 in 2016.

The research — released by National Shelter, SGS Economics & Planning, the Brotherhood of St Laurence and Beyond Bank Australia — found the Covid-19 pandemic had markedly impacted affordability.

“Hobart escaped most of the lockdowns during the pandemic and saw a lot of people moving from mainland states,’’ SGS Economics & Planning partner Ellen Witte said.

Shelter Tasmania chief executive Pattie Chugg said the lack of affordability had spread from Hobart to the entire state, and people were facing an increasingly competitive and expensive private rental market.

“Tasmania needs to reverse this long-term trend of sustained rental hardship and continue to build more affordable and social rental homes,” Ms Chugg said.

Labor housing spokeswoman Ella Haddad said the report was evidence of the worsening housing crisis.

“Now is the time for new thinking, innovative solutions and swift action to get more people into a home at every level of the housing sector,’’ she said.

Housing Minister Michael Ferguson said the state government would build 3500 new homes by 2027 to help the state’s most vulnerable.

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