‘Devastating’: Hobart rent crisis is bad, it's about to get worse

Hobart’s worsening rental crisis

Hobart’s rental crisis is reaching a point where many tenants may be forced to choose between paying for housing and buying food as annual costs climb towards about $40,000.

Current and projected rent levels

In a decade, typical Hobart renters could be paying close to $40,000 each year just to maintain a home, representing an increase of more than $9000 compared with current median house rents. Weekly rents are projected to rise from around $580 to about $760 for houses, while unit rents may jump from roughly $490 to more than $640 per week, pushing annual costs above $33,000.

Market conditions and vacancy rates

Greater Hobart’s rental market is extremely tight, with a vacancy rate below 1 per cent, showing that the broader Tasmanian housing crisis has not eased. Even the cheapest listing, a small studio in Battery Point, is now far from affordable for many renters, while premium city apartments can command more than $2000 per week.

Impact on tenants and living standards

Tenant households are increasingly being forced to cut back on essentials such as food and medicine in order to keep up with rent payments. Many renters are already excluded from Hobart’s market and are sharing housing or crowding into existing dwellings to cope with rising costs.

Expert warnings and calls for action

Housing advocates describe Hobart as moderately unaffordable already, warning that any further rent growth will be “hard” and “devastating for many” low and moderate income households. They argue that governments must urgently increase the supply of social and affordable housing and boost funding for overstretched homelessness services by around 20 per cent.

Landlords’ costs and rent expectations

Survey data from a property investors’ group indicate many landlords have seen operating costs jump by more than 10 per cent in the past year, excluding interest payments. Investor representatives suggest that landlords will seek rent increases of about 4–5 per cent to restore yields, which risks adding more pressure to already struggling tenants.

Forecasts for broader rental trends

Analysts at SQM Research expect rents across Australia’s capital cities to grow by 2–4 per cent over the next year, but Hobart is forecast to experience significantly higher growth of 6–10 per cent. While around 180,000 new dwellings are anticipated nationwide in 2026, experts caution that Hobart’s tight market and strong demand could keep local rents elevated.

“People are going without essentials just to pay the rent,” one housing advocate warned, describing the current situation as devastating for many Tasmanian renters.

Author’s summary

Hobart’s rental market is tightening so severely that projected rent hikes toward $40,000 a year threaten to push ordinary tenants into hardship, overcrowding and deeper housing insecurity.

Real Estate — 2025-11-28