Like most of the country the rental affordability crisis in Hobart is an ongoing issue with no foreseeable relief. In fact, current market conditions suggest it may be about to become even worse for lower to middle income earners.
This was discussed and forecast in my Spring 24 blog calling for “Investors Please.”
https://markcobernewre.com.au/investors-please/
The trend continues with a lack of listed properties apart from the furnished market which currently offers 54 properties…out of a total of 295 at the beginning of August 25. The excessive number of furnished properties can be attributed to the completion of the Bridgewater Bridge last month. This resulted in a number of properties returned to the market due to the large number of workers returning home. Many of these will remain vacant for many more weeks and months (in some cases) as winter demand is usually low for furnished homes and I see no change to this coming.
What’s alarming about the unfurnished market is that supply continues to worsen in the affordability range…no this doesn’t include the $800-$1400pw category we have plenty of those thank you…it’s the family homes for $400-$500pw that are so desperately needed. There are 19 3-4 bedroom homes available at $500pw or less currently with only two of these are within 5km of the city! The lack of viable options for working families is both alarming and unsustainable.
The figures speak for themselves—Hobart’s rental market is approaching a critical breaking point. The imbalance between demand and suitable supply is no longer just a concern; it’s a full-blown crisis. Without targeted investment in affordable, unfurnished family homes, particularly in areas close to the city, the pressure on lower to middle income earners will intensify. We are not just witnessing a housing shortage—we are staring down the barrel of a long-term structural failure. The time for passive observation is over. The market needs active participation from investors and decision-makers before this catastrophe becomes irreversible.
Unless meaningful incentives and policy changes are introduced to attract investors and boost supply in the right segments, we can only expect conditions to worsen further as demand continues to outstrip availability. Now more than ever, Hobart needs real action—not just headlines.
