Authored by the expert who managed and guided the team behind the Australia Property Pack
Yes, the analysis of Tasmania's property market is included in our pack
This article covers everything you need to know about current rental prices in Tasmania, from studios to 2-bedroom apartments and beyond.
We update this blog post regularly to give you the freshest data on Tasmania's rental market in 2026.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Tasmania.
Insights
- Tasmania's vacancy rate in Greater Hobart hovers between 0.3% and 0.8% in 2026, making it one of the tightest rental markets in Australia and a strong signal for landlords considering investment.
- Rent growth in Tasmania has slowed to around 3% to 5% year-over-year in 2026, a notable cooldown from the double-digit surges seen in 2021 and 2022.
- Sandy Bay remains Tasmania's fastest-leasing suburb thanks to its proximity to the University of Tasmania, where student demand keeps listings on the market for as little as 7 days.
- Heating efficiency upgrades, like reverse-cycle heat pumps and insulation, offer one of the highest ROIs for Tasmania landlords because tenants prioritize warmth in the state's cool climate.
- The January to March period is the busiest leasing season in Tasmania, driven by the university intake and summer relocations, so landlords listing in February often secure tenants faster.
- Tasmania's average rent per square meter sits around AUD 31 per month in 2026, which is lower than Sydney or Melbourne but reflects the state's unique lifestyle appeal.
- Greater Hobart renters now face serious affordability pressure, with the Rental Affordability Index showing many moderate-income households spending over 30% of income on rent.
- Off-street parking can add AUD 20 to 40 per week to Tasmania rents because inner Hobart streets are notoriously difficult for parking, making this amenity highly valued.
What are typical rents in Tasmania as of 2026?
What's the average monthly rent for a studio in Tasmania as of 2026?
As of early 2026, the average monthly rent for a studio apartment in Tasmania is around AUD 1,520 (approximately USD 950 or EUR 880), though in Greater Hobart you can expect to pay closer to AUD 1,650 to AUD 1,860 per month.
Most studios in Tasmania fall within a realistic range of AUD 1,300 to AUD 1,900 per month (USD 810 to USD 1,190, or EUR 750 to EUR 1,100), depending on whether you're looking in Hobart or regional towns like Launceston or Devonport.
The main factors that cause studio rents to vary in Tasmania are location (Hobart CBD and Sandy Bay command premiums), building age and condition, and whether the property includes extras like parking or modern heating systems.
What's the average monthly rent for a 1-bedroom in Tasmania as of 2026?
As of early 2026, the average monthly rent for a 1-bedroom apartment in Tasmania is approximately AUD 1,730 (around USD 1,080 or EUR 1,000), reflecting the tight market conditions across the state.
Realistic monthly rents for 1-bedroom apartments in Tasmania range from about AUD 1,400 to AUD 2,200 (USD 875 to USD 1,375, or EUR 810 to EUR 1,270), with the higher end found in sought-after Hobart suburbs.
In Tasmania, the cheapest 1-bedroom rents tend to be in regional areas like Burnie and Devonport, while the most expensive are in Hobart's inner suburbs such as Sandy Bay, Battery Point, and the CBD.
What's the average monthly rent for a 2-bedroom in Tasmania as of 2026?
As of early 2026, the average monthly rent for a 2-bedroom apartment in Tasmania is around AUD 2,170 (approximately USD 1,355 or EUR 1,255), with Hobart properties often sitting at the higher end of this range.
Most 2-bedroom rentals in Tasmania fall between AUD 1,800 and AUD 2,600 per month (USD 1,125 to USD 1,625, or EUR 1,040 to EUR 1,505), depending on the suburb and property quality.
The cheapest 2-bedroom rents in Tasmania are found in regional centers like Launceston's outer suburbs and the northwest coast, while the most expensive are in Hobart's prestige areas such as Battery Point, Sandy Bay, and South Hobart.
By the way, you will find much more detailed rent ranges in our property pack covering the real estate market in Tasmania.
What's the average rent per square meter in Tasmania as of 2026?
As of early 2026, the average rent per square meter in Tasmania is approximately AUD 31 per month (around USD 19 or EUR 18 per square meter per month).
Depending on the neighborhood, Tasmania's rent per square meter ranges from about AUD 22 to AUD 42 per month (USD 14 to USD 26, or EUR 13 to EUR 24), with inner Hobart at the top and regional areas at the bottom.
Compared to other major Australian cities, Tasmania's rent per square meter is noticeably lower than Sydney (around AUD 55) or Melbourne (around AUD 45), making it more affordable on a space-adjusted basis.
Properties that push rent per square meter above average in Tasmania typically feature modern heating systems, waterfront or scenic views, off-street parking, and proximity to Hobart's CBD or the University of Tasmania.
How much have rents changed year-over-year in Tasmania in 2026?
As of early 2026, rents in Tasmania have increased by approximately 3% to 5% compared to January 2025, with Greater Hobart closer to 4% to 6% growth.
The main factors driving rent changes in Tasmania this year include persistently low vacancy rates, strong population inflows, and limited new rental supply coming onto the market.
This year's rent growth in Tasmania is notably slower than the previous year, when annual increases reached 6% to 8% in some areas, signaling that the market is gradually stabilizing after the post-pandemic surge.
What's the outlook for rent growth in Tasmania in 2026?
As of early 2026, rent growth in Tasmania is projected to be modest at around 2% to 5% over the coming year, assuming current supply and demand conditions continue.
Key factors likely to influence Tasmania's rent growth include ongoing undersupply of rental housing, affordability ceilings limiting how much tenants can pay, and broader economic conditions such as interest rates and inflation.
Neighborhoods in Tasmania expected to see the strongest rent growth are inner Hobart suburbs like Sandy Bay, North Hobart, and the CBD, where vacancy remains extremely tight and demand is concentrated.
Risks that could cause Tasmania's rent growth to differ from projections include a sudden increase in housing supply, an economic downturn reducing tenant demand, or changes to migration patterns that affect population growth.
We have made this infographic to give you a quick and clear snapshot of the property market in Australia. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
Which neighborhoods rent best in Tasmania as of 2026?
Which neighborhoods have the highest rents in Tasmania as of 2026?
As of early 2026, the three neighborhoods with the highest average rents in Tasmania are Battery Point, Sandy Bay, and West Hobart, where typical rents reach AUD 2,600 to AUD 3,200 per month (USD 1,625 to USD 2,000, or EUR 1,505 to EUR 1,850).
These Tasmania neighborhoods command premium rents because they offer heritage character, waterfront proximity, walkability to Hobart's CBD, and access to prestigious schools and the University of Tasmania.
The tenant profile in these high-rent Tasmania neighborhoods typically includes established professionals, senior academics, and downsizers who prioritize lifestyle and convenience over space.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Tasmania.
Where do young professionals prefer to rent in Tasmania right now?
The top three neighborhoods where young professionals prefer to rent in Tasmania are Hobart CBD, North Hobart, and West Hobart, all offering walkability and proximity to restaurants and nightlife.
Young professionals in these Tasmania neighborhoods typically pay monthly rents of AUD 1,800 to AUD 2,400 (USD 1,125 to USD 1,500, or EUR 1,040 to EUR 1,390) for a 1-bedroom or small 2-bedroom apartment.
Specific amenities that attract young professionals to these Tasmania neighborhoods include cafes and bars within walking distance, good public transport connections, bike-friendly streets, and modern apartment fit-outs with efficient heating.
By the way, you will find a detailed tenant analysis in our property pack covering the real estate market in Tasmania.
Where do families prefer to rent in Tasmania right now?
The top three neighborhoods where families prefer to rent in Tasmania are Kingston, Howrah, and New Town, all offering space, good schools, and a suburban feel while remaining commutable to Hobart.
Families renting 2-3 bedroom homes in these Tasmania neighborhoods typically pay AUD 2,400 to AUD 3,000 per month (USD 1,500 to USD 1,875, or EUR 1,390 to EUR 1,735).
Features that make these neighborhoods attractive to families in Tasmania include larger backyards, quieter streets, access to parks and playgrounds, and proximity to shopping centers for daily errands.
Top-rated schools near these family-friendly Tasmania neighborhoods include Kingston Primary School, Howrah Primary School, and New Town High School, all of which have strong reputations and community ties.
Which areas near transit or universities rent faster in Tasmania in 2026?
As of early 2026, the top three areas near transit or universities that rent fastest in Tasmania are Sandy Bay (near the University of Tasmania), Hobart CBD, and the inner Sandy Bay transit corridor served by frequent Metro buses.
Properties in these high-demand Tasmania areas typically stay listed for just 7 to 14 days before being leased, compared to 14 to 21 days in less connected suburbs.
The typical rent premium for properties within walking distance of transit or universities in Tasmania is around AUD 40 to AUD 80 per week (USD 25 to USD 50, or EUR 23 to EUR 46) above comparable properties further away.
Which neighborhoods are most popular with expats in Tasmania right now?
The top three neighborhoods most popular with expats in Tasmania are Sandy Bay, Battery Point, and Hobart CBD, all offering walkability, scenic beauty, and easy access to services.
Expats renting in these Tasmania neighborhoods typically pay AUD 2,200 to AUD 3,000 per month (USD 1,375 to USD 1,875, or EUR 1,270 to EUR 1,735) for a well-located apartment or townhouse.
Features that attract expats to these Tasmania neighborhoods include English-speaking communities, proximity to cafes and cultural venues, reliable public transport, and a safe, relaxed lifestyle.
The nationalities most represented in these expat-friendly Tasmania neighborhoods tend to be British, American, and European professionals, often working in academia, healthcare, or government sectors.
And if you are also an expat, you may want to read our exhaustive guide for expats in Tasmania.
Get fresh and reliable information about the market in Tasmania
Don't base significant investment decisions on outdated data. Get updated and accurate information with our guide.
Who rents, and what do tenants want in Tasmania right now?
What tenant profiles dominate rentals in Tasmania?
The top three tenant profiles dominating Tasmania's rental market are working singles and couples (especially in Hobart), students linked to the University of Tasmania, and families seeking larger homes in commuter suburbs.
In Tasmania's rental market, working singles and couples represent roughly 40% of tenants, students account for about 25%, and families make up around 20%, with retirees and essential workers filling the remainder.
Working singles and couples in Tasmania typically seek 1-2 bedroom apartments close to the CBD, students prefer studios or shared housing near the University of Tasmania in Sandy Bay, and families look for 3-4 bedroom houses in suburbs like Kingston or Howrah.
If you want to optimize your cashflow, you can read our complete guide on how to buy and rent out in Tasmania.
Do tenants prefer furnished or unfurnished in Tasmania?
In Tasmania, approximately 75% of tenants prefer unfurnished rentals, while about 25% opt for furnished properties, reflecting a market dominated by longer-term renters.
The typical rent premium for a furnished apartment compared to an unfurnished one in Tasmania is around AUD 50 to AUD 100 per week (USD 30 to USD 60, or EUR 28 to EUR 55).
Tenant profiles that tend to prefer furnished rentals in Tasmania include students, short-term professional relocations, and expats arriving without household goods, particularly in inner Hobart and Sandy Bay.
Which amenities increase rent the most in Tasmania?
The top five amenities that increase rent the most in Tasmania are efficient heating systems (like reverse-cycle heat pumps), off-street parking, pet-friendly policies, outdoor space such as a deck or courtyard, and modern kitchen fit-outs.
In Tasmania, efficient heating can add AUD 20 to 40 per week (USD 12 to 25, EUR 11 to 23), off-street parking adds AUD 20 to 40 per week, pet-friendly policies add AUD 10 to 30 per week, outdoor space adds AUD 15 to 35 per week, and a modern kitchen adds AUD 15 to 30 per week.
In our property pack covering the real estate market in Tasmania, we cover what are the best investments a landlord can make.
What renovations get the best ROI for rentals in Tasmania?
The top five renovations that get the best ROI for rental properties in Tasmania are heating and insulation upgrades, kitchen refreshes, bathroom modernizations, durable flooring installation, and fresh interior paint.
In Tasmania, heating upgrades typically cost AUD 3,000 to AUD 8,000 (USD 1,875 to USD 5,000, EUR 1,735 to EUR 4,630) and can add AUD 20 to 40 per week to rent; a kitchen refresh costs AUD 5,000 to AUD 15,000 and adds AUD 15 to 30 per week; bathroom updates cost AUD 4,000 to AUD 12,000 and add AUD 10 to 25 per week; flooring costs AUD 2,000 to AUD 6,000 and adds AUD 10 to 20 per week; and fresh paint costs AUD 1,500 to AUD 4,000 and helps reduce vacancy time significantly.
Renovations that tend to have poor ROI in Tasmania and should be avoided include luxury finishes that exceed the neighborhood standard, swimming pool installations (not valued in Tasmania's climate), and overly customized layouts that limit tenant appeal.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Australia versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
How strong is rental demand in Tasmania as of 2026?
What's the vacancy rate for rentals in Tasmania as of 2026?
As of early 2026, the vacancy rate for rental properties in Greater Hobart is around 0.3% to 0.8%, making it one of the tightest rental markets in Australia.
Across different neighborhoods in Tasmania, vacancy rates range from about 0.3% in inner Hobart suburbs like Sandy Bay to around 1.5% to 2.0% in regional areas such as the northwest coast.
Tasmania's current vacancy rate is well below the historical average of around 2% to 3%, indicating that rental demand continues to significantly outstrip supply, especially in Hobart.
Finally please note that you will have all the indicators you need in our property pack covering the real estate market in Tasmania.
How many days do rentals stay listed in Tasmania as of 2026?
As of early 2026, the average number of days rentals stay listed in Tasmania is around 10 to 14 days for Greater Hobart and 14 to 21 days in regional areas.
The realistic range of days on market varies from as few as 7 days for well-priced apartments in high-demand Hobart suburbs to 21 to 30 days for properties in less connected or premium-priced locations.
Compared to one year ago, days-on-market in Tasmania have remained stable or slightly decreased, reflecting the continued tightness of the rental market rather than any significant loosening.
Which months have peak tenant demand in Tasmania?
The peak months for tenant demand in Tasmania are January, February, and March, coinciding with the summer moving season, new job starts, and the University of Tasmania's academic intake.
Factors driving these seasonal demand patterns in Tasmania include the influx of students to Hobart and Launceston, families relocating before the school year, and professionals starting new positions after the holiday period.
The months with the lowest tenant demand in Tasmania are typically May through August, when the cooler weather and mid-year timing discourage moves, though vacancy remains tight year-round in Hobart.
Buying real estate in Tasmania can be risky
An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
What will my monthly costs be in Tasmania as of 2026?
What property taxes should landlords expect in Tasmania as of 2026?
As of early 2026, landlords in Tasmania should expect to pay annual property-related costs of roughly AUD 3,000 to AUD 8,000 (USD 1,875 to USD 5,000, or EUR 1,735 to EUR 4,630) in combined land tax and council rates, depending on property value and location.
The realistic range for these costs in Tasmania varies from about AUD 2,000 per year for lower-value regional properties to AUD 12,000 or more per year for high-value properties in Hobart's premium suburbs.
Property taxes in Tasmania are calculated using two main components: land tax, which is based on assessed land value using published rate brackets from the State Revenue Office, and council rates, which are set by each local council based on property value and a rate-in-the-dollar calculation.
Please note that, in our property pack covering the real estate market in Tasmania, we cover what exemptions or deductions may be available to reduce property taxes for landlords.
What maintenance budget per year is realistic in Tasmania right now?
A realistic annual maintenance budget for a typical rental property in Tasmania is around AUD 3,500 to AUD 7,000 (USD 2,190 to USD 4,375, or EUR 2,025 to EUR 4,050), depending on property age and condition.
The range of annual maintenance costs in Tasmania varies from about AUD 2,500 for newer properties in good condition to AUD 10,000 or more for older homes with weather exposure or deferred maintenance.
Landlords in Tasmania typically set aside 5% to 8% of annual rental income for maintenance, which aligns with the investor rule of thumb of budgeting 1% to 1.5% of property value per year.
What utilities do landlords often pay in Tasmania right now?
In Tasmania, landlords most commonly pay council rates and water/sewerage fixed charges, while tenants typically handle electricity, gas, and internet.
Typical monthly costs for landlord-paid utilities in Tasmania include council rates at AUD 150 to AUD 300 per month (USD 95 to USD 190, EUR 87 to EUR 175) and water/sewerage fixed charges at AUD 40 to AUD 80 per month (USD 25 to USD 50, EUR 23 to EUR 46).
The common practice in Tasmania is that landlords keep the water account in their name and may pass metered water usage to tenants where separately metered, while electricity and gas are almost always the tenant's responsibility under a separate account.
How is rental income taxed in Tasmania as of 2026?
As of early 2026, rental income in Tasmania is taxed as part of your Australian income tax at your marginal rate, which ranges from 0% for income under AUD 18,200 up to 45% for income over AUD 190,000, plus the Medicare levy.
The main deductions landlords in Tasmania can claim against rental income include mortgage interest, property management fees, repairs and maintenance, council rates, insurance, and depreciation on fixtures and fittings.
Common tax mistakes landlords in Tasmania should avoid include claiming capital improvements as immediate repairs (they must be depreciated instead), failing to apportion expenses if the property was partly owner-occupied, and not keeping proper records for the ATO's strict documentation requirements.
We cover these mistakes, among others, in our list of risks and pitfalls people face when buying property in Tasmania.
We made this infographic to show you how property prices in Australia compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Tasmania, we always rely on the strongest methodology we can … and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why It's Authoritative | How We Used It |
|---|---|---|
| Australian Bureau of Statistics (ABS) - Latest Insights into the Rental Market | The ABS is Australia's official statistics agency, providing data that underpins the CPI rent measure. | We used this as our baseline for statewide Tasmania median weekly rent trends. We also relied on it to understand the late-2024 slowdown narrative. |
| ABS - Measuring Rents in the CPI | This explains the official methodology behind Australia's CPI rent measure and its underlying dataset. | We used it to validate why ABS rent signals are reliable. We also used it as a guardrail when projecting January 2026 estimates. |
| Domain Rental Report - September 2025 | Domain is a major Australian property portal with a transparent, widely-cited rental data series. | We sourced Hobart house and unit median weekly rents and vacancy signals from this report. We translated these into bedroom-level estimates for January 2026. |
| SQM Research - Hobart Vacancy Rate | SQM is one of Australia's best-known rental supply and demand trackers, frequently cited by analysts. | We used this to cross-check how tight Hobart's rental market is. We also used it to support our fast-leasing estimates. |
| Cotality (CoreLogic) - Quarterly Rental Review | CoreLogic/Cotality is a leading property data provider used by banks, researchers, and major media. | We drew on this for national rental growth slowdown context and seasonality patterns. We shaped our January 2026 growth assumptions using their analysis. |
| SGS Economics & Planning - Rental Affordability Index 2025 | The RAI is a well-established affordability benchmark combining rent and income data from recognized institutions. | We used this to explain who is under pressure in Greater Hobart. We also used it to support tenant profile and demand analysis. |
| Australian Government Housing Data - Rental Affordability Index | This is an official government housing data portal documenting the RAI series. | We used it to corroborate what the RAI measures. We kept our affordability interpretation consistent with this source. |
| Reserve Bank of Australia - Statement on Monetary Policy (November 2025) | The RBA is Australia's central bank and provides key macro outlook that affects housing costs. | We used this to frame January 2026 economic conditions like inflation and interest rates. We referenced it for the rent growth outlook section. |
| RBA - Statement on Monetary Policy Landing Page | This is the canonical hub for the RBA's quarterly macro outlook publications. | We used it to ensure we referenced the correct SMP series. We kept our macro outlook properly grounded using this resource. |
| State Revenue Office Tasmania - Land Tax Rates | This is the official Tasmanian revenue authority and primary source for statutory land tax rates. | We used this to describe what landlords actually pay in land tax. We built realistic monthly cost examples using these brackets. |
| Australian Taxation Office - Rental Properties Guide 2025 | The ATO is the official authority for rental income taxation and deductible expenses in Australia. | We used this to explain how rental income is taxed and what expenses are deductible. We kept the landlord cost section accurate and clear. |
| City of Hobart - Rates and Charges 2025-26 | This is the local government authority and primary source for Hobart council rates. | We used this to explain that landlords pay council rates. We referenced it when estimating typical annual holding costs in Hobart. |
| City of Launceston - Rates 2025-26 | This is the local government authority and primary source for Launceston council rates. | We used this to show council rates apply outside Hobart. We supported the idea that rates vary by council and property value. |
| TasWater - Tenant Billing | TasWater is the state water and sewerage provider explaining how billing works. | We used this to clarify water and sewerage billing arrangements for landlords and tenants. We supported our utility guidance with this source. |
| Tenants' Union of Tasmania - Water and Sewerage Charges | This is a long-running tenant rights organization that explains how billing rules work in practice. | We used this to explain the common split between owners and tenants for water charges. We cross-checked practical billing arrangements here. |
| University of Tasmania - Accommodation | UTAS is the major university in Tasmania and its accommodation pages reflect ongoing student housing demand. | We used this to explain why Sandy Bay and Hobart CBD stay competitive for rentals. We supported the student tenant profile section with this source. |
| Metro Tasmania - Sandy Bay to Hobart Timetables | This is the official public transport operator in Hobart publishing actual routes and service patterns. | We used this to justify why some suburbs rent fast due to frequent transit links. We made the near-transit examples genuinely Tasmania-specific. |
Get the full checklist for your due diligence in Tasmania
Don't repeat the same mistakes others have made before you. Make sure everything is in order before signing your sales contract.
Related blog posts