Hobart rents cost more than Melbourne

Melbourne’s median house rent is $40 cheaper than Hobart’s. Picture: Supplied

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Renting in Hobart has never been more expensive.

PropTrack’s March quarter rental figures show the median rental house, unit and dwelling figures have reached new highs.

The median rent for a Hobart house is now $620 per week, which is $40 higher than Melbourne.

Hobart’s units are cheaper to rent than Melbourne’s — $525 compared with $600 — bringing both cities to a median dwelling rental figure of $590.

Together, they are the cheapest rental markets among the cities.

Hobart house rents increased by 3.3 per cent in March compared to the previous quarter and by 6.9 per cent year-on-year.

Units increased by 2.9 per cent quarterly and 5 per cent annually.

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No.27 Briar Crs, Gagebrook is seeking $490 per week through 4one4 Property Co. Picture: realestate.com.au

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No.30 Holloway Dr, Herdsmans Cove is listed at $500 per week with TG Newton. Picture: realestate.com.au

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Shelter Tas chief executive Pattie Chugg is concerned that rents are continuing to rise, outstripping people’s ability to pay.

“For many Tasmanians, each rent rise makes the difference between coping and crisis,” Ms Chugg said.

“Tasmanians seeking housing and homelessness support have increased by 41 per cent in the last year alone.

“The lack of affordable housing is the major cause of homelessness in this state and every rent increase has serious consequences, pushing people into crisis.”

Pattie Chugg CEO of Shelter Tas.

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Ms Chugg said the high costs of rent are forcing people to skip meals, sleep in cars, live in overcrowded conditions and preventing women and children from escaping family and domestic violence.

“These constant high rents in the private market are causing more Tasmanians to apply for social housing,” she said.

“There are now 5533 households waiting for homes, an increase of 9.2 per cent in the last 12 months, and the waiting time has now blown out to 104 weeks.”

REA Group analyst Luc Redman.

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REA Group analyst Luc Redman said many factors shape rental demand, but the most effective way to ease pressure is to add new homes efficiently.

He said Tasmania and Hobart in particular have been slow to deliver new supply, with construction skewed toward lower-density fringe development rather than higher-density housing closer to the CBD.

“Over the past 18 to 24 months, Hobart’s vacancy rate has fallen below 1 per cent, putting strong upward pressure on Hobart rents,” he said.

“Before the pandemic, Melbourne’s rental market was typically more expensive than Hobart’s.

“Covid-era out-migration from Victoria, combined with Tasmania’s strong population growth from 2015 to 2019, flipped that pattern.”

No.14 Trumpeter St, Battery Point is available to rent for $1200 per week with Peterswald. Picture: realestate.com.au

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No.30 Marlborough St, Sandy Bay is asking $1800 per week via Ray White Hobart. Picture: realestate.com.au

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PropTrack’s Rental Affordability report, released last month, showed four out of five rentals are too expensive for a typical Tasmanian family to afford without financial stress.

Anglicare’s 2026 Rental Affordability Snapshot described the state of the market as “never been more dire”.

Ms Chugg said the most effective way to reverse the housing crisis is to increase investment in social and affordable housing, with Shelter Tas calling for 10 per cent of all dwellings to be social and affordable homes.