A recent report revealed that the rental crisis in Tasmania is worsening, with 80% of available rental properties deemed unaffordable for middle-income families. Households earning an average annual income of $90,500 can afford only 19% of listed properties—the lowest proportion among Australian states.
The crisis is even more severe for low-income groups such as single individuals, students, and retirees. Families earning around $62,000 annually and allocating 25% of their income to rent can access just 1% of available housing, highlighting a severe shortage of options for this segment.
Even relatively high-income households are facing difficulties. For example, those earning $147,000 per year can afford only 10% of rental listings. Despite a slight improvement compared to the peak of the crisis in 2022 and 2023, conditions are expected to deteriorate again between 2025 and 2026, with rent prices projected to rise once more by 2025.
Average rents in Hobart increased by 10% between 2024 and 2025, following a slight decline in 2023 and moderate growth in 2024. Regional areas have also seen significant increases since the start of the pandemic, with rents rising by about $150 per week, compared to $125 in Hobart.
Tasmania has been the least affordable state in Australia in terms of rental affordability since the mid-2000s, with earlier price surges than other states placing a heavy burden on tenants. Since March 2020, rising prices have added thousands of dollars in annual financial strain on households.
The report is based on advertised listing data and does not account for the impact of government support or social housing, which may limit the completeness of the overall picture.
