A 17% increase in advertised rentals available in the past year is largely credited for taking the accelerator off Hobart rent rises.
Domain’s latest report found average rents were unchanged at $540 dollars a week for houses and $450 for units for the 3 months to the end of September.
Dr Nicola Powell explains the forces that have led to more rental supply that has helped cap further rises.
“The increase in advertised rentals has really been due to the fact that we saw the value of investment home loans reaching a peak earlier in 2022, that increase in investment activity that we saw across Tasmania has really helped to feed that higher supply.”
However, she does see the potential for upward pressure returning.
“When you have a look at the future, there are demand pressures, we are seeing an increase in overseas migration and obviously international tourism is resuming, that is going to put pressure on demand in the rental market, so we could see it tighten further.”