News Corp Australia
First published 2 May 2025, 5:00am
Quarterly data shows Hobart rents have grown substantially. Picture: Supplied
Hobart rents are on the move — and the trend is upward.
Compared to the other capital cities, Hobart recorded the second-highest quarterly growth in March rental prices, according to REA Group’s Market Insight report.
The data showed that median advertised rental home prices in Hobart — houses and units combined — grew 4.8 per cent over the March quarter to reach $550 per week.
This was miles ahead of the combined capital city growth figure, 1.6 per cent, and just behind market-leading Darwin at 5 per cent.
Despite the increase, Hobart remains the least expensive capital city to rent in.
Research by REA Group senior economist Anne Flaherty found that the speed of rental growth has accelerated in the first three months of 2025, reversing the trend of slowing growth seen late last year.
A typical Hobart rental home now costs $550 per week, or more than $28,000 per year.
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Ms Flaherty said unit rents in Hobart increased by 2.1 per cent over the March quarter to $490 per week, while house rents were up 4.5 per cent over the same period to sit at $585 per week.
She said regional Tasmania’s rental prices lifted just 1.1 per cent over the quarter, yet remain 4.7 per cent above March 2024 levels at $450 per week.
Unit rent growth in regional Tasmania held flat over the March quarter sitting at $400 a week, while house rents grew 2.2 per cent over the same period to reach $460 per week, the economist said.
“Looking ahead, the more modest pace of rent growth seen over the past 12 months is expected to continue throughout the rest of this year,” Ms Flaherty said.
REA Group economist Anne Flaherty.
Meanwhile, separate research shows that rent hikes are outpacing inflation.
New figures from Money.com.au reveal national rents have surged more than 14 per cent over the past two years, with further increases expected.
The last time rents grew this steeply was during the global financial crisis, but this time the pressures are even more complex — record migration, ultra-low vacancy rates and a shortfall in housing supply are fuelling a surge that’s catching millions in its wake.
The website’s property expert, Mansour Soltani, said renters were now facing a very different economic reality to mortgage holders.
“Inflation is easing and the RBA is moving closer to rate cuts, but renters are being left behind,” Mr Soltani said. “There’s a growing divide between homeowners who are set to see some relief, and renters who are still copping steep price increases.”
No.30 Greenhill Dr, Kingston is available for$650 per week. First National Real Estate.
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Money.com.au analysis shows rents rising 7.3 per cent in 2023 and a further 6.4 per cent in 2024 — far outpacing the overall CPI rate of 6.6 per cent. If current conditions persist, rents could jump another 18 per cent by 2030.
Fall Real Estate has No.2 Anstey St, Howrah available to rent for $650 per week.
Last month, a REA Group report into rental affordability put a spotlight on the struggles faced by Tasmanians. It found that a typical household income allowed people to rent only one in five properties listed on realestate.com.au.
Tasmania was named the third-least affordable state for renters.
Angus Moore, REA Group’s executive manager of economics, said the challenge is even tougher for those in lower income brackets, with the report finding just 1 per cent of homes would be affordable.
“It highlights the importance of Commonwealth Rent Assistance support for lower-income renters,” he said.
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