Renters in Launceston are facing significant challenges, with median rents rising by approximately $122 per week compared to five years ago. A recent review by Cotality reveals that the current median rental price in Launceston and the broader North East area stands at $495. This represents a 32 per cent increase since 2020, coinciding with a dramatic decrease in housing availability.
The rental landscape in greater Hobart has also seen a notable shift, with rents increasing by 30 per cent during the same period. Renters there now pay an average of $584 per week. A critical factor contributing to these rising costs is the plummeting vacancy rates in Launceston and the North East, which have dropped from 2.7 per cent to 1.2 per cent since September 2024. Additionally, the total number of rental listings has decreased by 37 per cent in the past year and 39 per cent over the last five years.
Challenges for Renters in Launceston
According to Alex Bomford, Acting Principal Solicitor at the Tenants’ Union of Tasmania, the current housing market poses severe difficulties for renters. He noted, “The situation for renters in Tasmania, and in particular Launceston, has been poor for a long time now.” Many renters find it increasingly challenging to secure housing, and those who do often encounter prices beyond their means.
The stress of the rental market is palpable, with many individuals reportedly submitting applications for numerous properties before finding one. “Anecdotally, you hear that people are having to apply for dozens of houses before they get one, or they turn up to open homes and there’s 50 people there,” Bomford stated, highlighting the competitive environment that exacerbates stress for potential tenants.
This overwhelming pressure can lead to negative consequences, including a reluctance among renters to report issues with their properties. Bomford mentioned that a previous study indicated around 50 per cent of tenants chose not to report problems due to fears of retribution. “Tenants are very, very reluctant to actually enforce the rights that they have, minimal as they are, because they’re afraid that their landlord will just turn around and kick them out,” he explained.
Comparative Rental Prices Across Australia
The recent surge in rental prices in Launceston places its affordability closer to that of larger Australian capital cities. For context, the median rental price in Melbourne currently stands at $615, while Adelaide follows closely with a median of $633 per week. Sydney remains the most expensive city for renters, with a staggering average of $807 weekly.
Despite Launceston’s recent price hikes, it is noteworthy that the vacancy rates in Melbourne and Adelaide are similarly low, with rates at 1.4 per cent and 0.9 per cent, respectively. Conversely, Hobart offers the lowest median rental price among capital cities at $584 per week.
On a national scale, the average rent across Australia has risen by 44 per cent in the past five years, indicating a widespread issue affecting tenants throughout the country. The current trends in Launceston reflect broader economic pressures that continue to challenge renters, emphasizing the need for sustainable housing solutions in the region.
