Four out of five rentals in Tasmania are too expensive for the typical household. Picture: Supplied
Tasmanian households earning a typical income can afford to rent just one in five rental properties — that’s the lowest share of any state.
This was among the discoveries in the latest PropTrack Rental Affordability Index, released today, which also showed that the Apple Isle is the third-least affordable state for renters.
Angus Moore, REA Group’s executive manager of economics, said for lower income-earning households, rental affordability has been strained in Tasmania for years.
Mr Moore said Tasmania experienced a worsening in rental affordability before other states, although they have been catching up recently.
“Even pre-pandemic, rents were growing extremely strongly in Tasmania. It’s a 5-10 year story where people want to move to Tassie, but the small housing market struggles to accommodate the extra demand,” he said.
MORE: Which Tas suburbs have largest variation in house values?
From doldrums to one of the best years on record
No.23 Robinia St, Primrose Sands is seeking $400 per week with Homelands Property. Picture: realestate.com.au
No.1/12 Madden Ct, Rosny is available for $500 per week through EIS Property. Picture: realestate.com.au
The report shows that median income households (earning $83,000 per ABS figures) could afford only 19 per cent of rentals listed on realestate.com.au between July and December 2024.
But it gets worse in lower income brackets. In the 30th percentile of incomes (about $56,000), the report showed just 1 per cent of homes would be available to rent.
Mr Moore described this as “essentially zero homes”.
“It is effectively impossible to find a rental,” he said.
“That would be singles, students, some retirees. Young and older households where people are perhaps not working a lot or earning a lot.
“It highlights the importance of Commonwealth Rent Assistance support for lower-income renters.”
Rental Affordability Index.
Rental Affordability Index.
Tenants’ Union of Tasmania principal solicitor Ben Bartl described the report as “alarming”.
He said the lack of supply is driving up demand, resulting in unaffordable rents and forcing people further away from friends and family, essential services and places of employment.
“With median rents having increased by $25 per week over the last year, the average renter is paying an additional $1300 to keep a roof over their head,” he said.
“Worryingly, the social housing wait list continues to increase with 4866 applicants waiting for social housing, an increase of 478 in just three years.”
Ben Bartl principal solicitor Tenants Union of Tasmania. Picture: Nikki Davis-Jones
PropTrack economist Angus Moore. Picture: Supplied
Real Estate Institute of Tasmania president Russell Yaxley said while the report shows rent affordability slightly improved in the past 12 months, it’s “not by much”.
“One large factor that affects rental affordability is our average income. It is the lowest in Australia and has been for a long time,” he said.
“Add to this the cost of living right now, and the overall pressure would be challenging.”
Mr Yaxley said there are some affordable options available in the existing homes market.
Adding land developments to this will continue to see more choices for buyers, he said.
“It’s great to see new apartment developments happening.
“When more apartments and homes become available, it frees up existing homes for investors and first home buyers the chance to purchase.”
Russell Yaxley, REIT president.
Meanwhile, figures from Compare the Market show over 300 suburbs nationwide where renters would have more left in their family budget if they were paying a mortgage rather than renting.
In Hobart, only Gagebrook made the cut, and there was a $17 per month difference between buying and renting.
Three Launceston suburbs were less expensive to buy, Mowbray, Newnham and Ravenswood, alongside East Devonport.
Rock Property has No.1/236 Tranmere Rd, Tranmere available for $665 per week. Picture: realestate.com.au
No.16 Acacia Cres, Gagebrook can be rented for $370 per week with Fall Real Estate. Picture: realestate.com.au
PropTrack data shows greater Hobart’s cheapest suburbs to rent a house are Gagebrook, Bridgewater and Primrose Sands (all $450 per week), Herdsmans Cove ($455), and New Norfolk ($460).
The most expensive are Tranmere ($700), Rosny ($673), Sandy Bay ($655), Battery Point ($648), and Taroona ($645).
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