Tasmanian households now need to earn more than $100,000 a year to rent a typical house in Hobart without falling into financial stress.
Research from Domain found renting a median-priced house in the capital requires an annual income of $100,533 – up significantly from pre-pandemic levels.
The report, released in December, found a two-person household earning average wages now spends 22.1% of their income on rent, up from 16.7% in 2019.
Hobart’s rental market remains one of Australia’s most affordable capitals, sitting alongside Melbourne at the cheaper end of the scale.
Sydney tops the list as the least affordable, requiring $135,200 to rent comfortably.
Within Tasmania, the gap between expensive and affordable suburbs is the narrowest in the country.
Battery Point, Sandy Bay and Tranmere top Hobart’s priciest suburbs at $700 per week, requiring an income of $121,333.
At the other end, Herdsmans Cove offers the most affordable rents at $440 weekly, needing just $76,267 in annual earnings.
Bridgewater and Gagebrook follow closely at $450 per week.
Unit renters face a lower barrier, with Hobart requiring just $84,933 in income – the lowest of any capital city.
That creates a gap of roughly $15,600 between what households need to rent a house versus a unit.
The figures are based on the standard benchmark of rental stress, where households spending more than 30% of pre-tax income on rent are considered under financial pressure.
Domain’s analysis found vacancy rates have remained below 1.5% across all capitals for an extended period, keeping upward pressure on rents.
Lower-income households face the greatest strain, with the bottom 20% of earners typically spending around 35% of their income on rent.
The report noted middle and outer-ring suburbs continue to offer lifestyle appeal without overwhelming financial strain.
Renters seeking affordability will find their best options in Hobart’s northern suburbs and the Derwent Valley, where weekly rents sit below $480.
