Rental affordability has nosedived in Hobart over the past year, falling by 7.4 per cent and bucking the improvement seen in other capital cities, the latest Rental Affordability Index shows.
Greater Hobart held on to its crown as the least affordable city in Australia for the second year running, as rents continued to climb amid stagnant wage growth.
"Hobart is in the midst of a rental crisis, the worst in the country," said Ellen Witte, partner at SGS Economics and Planning. "The rents have been increasing by 10 per cent per annum over the last three years. No matter how hard you work, you won’t be able to keep up with price rises like this.
"There is a lack of new supply, while stock is being lost to the short-term holiday accommodation market."