Hobart rents near their record while purchase prices trail the 2022 high

Hobart's property market is doing two things at once that don't often go together. Rents are at or near their highest levels on record. Purchase prices are still 2% below where they stood in March 2022, according to Cotality's October 2026 Housing Chart Pack. For investors, landlords, and tenants working through what that means right now, both figures matter.

Rents at or near records

In the June 2026 quarter, Domain recorded Hobart house rents reaching a new high of $625 per week, with unit rents hitting a record $520 per week. PropTrack puts the overall Hobart median at $600 per week; Cotality's measure sits higher at $632 per week. The difference reflects methodology, but the direction across measures is consistent.

Annual rent growth in Hobart reached 9.1% in the June 2026 quarter on PropTrack's measure, making Hobart the second fastest-growing rental market of any Australian capital, behind Perth. SQM Research recorded a similar figure for the twelve months to September 2026, at 9.5%. Either way, Hobart rents are growing at roughly twice the rate of the national average. Cotality put national annual rent growth at 5.5% for September to October 2026.

Regional Tasmania has been growing rents faster still. PropTrack recorded 11.1% annual rent growth outside Hobart in the June 2026 quarter. The Tenants' Union of Tasmania's June quarter data places the North at 12.7% and the North-West at 11.3%. The Hobart result is part of a broader statewide trend, not an isolated one.

The vacancy rate gives context for why. SQM Research put Hobart's vacancy rate at 0.5% in September 2026, with 127 properties available across the city. The national vacancy rate sat at approximately 1.35% on SQM Research's August 2026 measure. Hobart's rental market has very little slack.

The yield picture, and what it rests on

Hobart dwelling values fell 0.5% in September 2026 to a median of $741,496, and now sit 2% below the record set in March 2022, according to Cotality. That combination, values trailing their peak while rents are near theirs, produces a yield figure that is drawing attention. Hobart's gross rental yield was 4.4% in September 2026 versus 3.9% nationally, on Cotality's measure.

That yield premium is real, but it is worth understanding what it rests on. A vacancy rate of 0.5% means there are very few alternatives for tenants in Hobart. Yield and vacancy move together; if rental supply were to grow meaningfully, both would likely shift. That is part of the picture for any investor assessing the entry point. A property management service that tracks comparable listings closely can give a current read on what the market is actually producing.

The affordability picture matters to anyone thinking about renewals. The Tenants' Union of Tasmania recorded a three-bedroom Hobart median of $680 per week in the June 2026 quarter, describing it as unaffordable for most Hobart households. Anglicare's Rental Affordability Snapshot found no rental properties in Tasmania affordable for people on single parent payment, youth allowance, disability support pension, or JobSeeker. The Tenants' Union also noted some moderation in rent growth compared to earlier quarters, which is worth watching.

A renewal rate supported by solid comparable evidence gives both parties clear ground. One that pushes a stable long-term tenant to vacancy carries a real cost in a city where 127 properties are available across the entire metro area. A rental appraisal is a straightforward way to see where comparable rents actually sit before committing to a figure.

Hobart remains, despite its growth rate, among the more affordable capitals to rent in Australia on PropTrack's comparison. Its median sits below Darwin, Sydney, Melbourne, Brisbane, Adelaide, and Perth.

If you want to talk through what the current conditions mean for a property you hold or are considering, we're here.