News and Views

The weighted median rent index – all rents in Tasmania amalgamated into a number to examine trends – continues to very slowly grow this quarter: from $421 in the June quarter to $424 in the September quarter.

The highest weighted median rent change in the last quarter was recorded in the North West with 2.9%, the lowest change occurred in the South with 0.5%.

However, the slowing of rent increases arises in the context of significant rent increases over the last few years, and this is still clearly visible in the changes in rent between this quarter and the same quarter last year. Median rents across the state increased by 8% over the last 12 months, again lead by the North West with a yearly change of 12.1%, followed by the South with 9.3% and the North with 8.1%.

Suburbs in Greater Hobart are home to the biggest rent increases over the last year. Tenants renting a 3-bedroom home in the Kingston area are paying on average $70 more than they did at the same time last year, in Glenorchy and on the Eastern Shore have to spend an additional $60 per week; in the North East of Tasmania 3-bedroom properties are $55 per week more expensive than last year and on the West Coast and in the Far South $50 was added to the weekly rent over the last 12 months.

According to the 2021 Census a staggering 34% of households in the North West had a household income of less than $650 a week (compared to 21.1% in Tasmania and 16.5% in Australia). An increase of $50 per week means households have to come up with an additional $2600 a year just because the market allows it.

A rather curious development is the development of rents for 2-bedroom homes in the Central South area. The median rent decreased from $370 to $240, or in other words by 35%! This was caused by a high number of bonds being submitted for community housing homes. In New Norfolk 15 out of 26 bonds paid for 2-bedroom rentals were Community Housing, in Bridgwater it was 18 out of 27 and in Gagebrook/Herdsmans Cove 20 out 24 had Community Housing Providers as landlords. We are unsure whether these are new properties added to the market or a turnover in tenancies.

Find the full Tasmanian Rents publication here.