The Kingborough municipality is one of the most unaffordable districts in the country according to new data released in the annual Rental Affordability Index (RAI).
It joined the Greater Hobart region in leading the country as the least affordable capital city for renters, according to figures published in the RAI.
Compiled by public policy specialists SGS Economics and Planning, the RAI provide insights into how rental affordability impacts different locations and household types.
Its basis is tailored on data and analysis revealing affordability trends in the rental market, with a particular focus on low-income households.
High rents, relative to household incomes, mean that Greater Hobart area, including the Kingborough region, is the least affordable metropolitan area in Australia and has been since 2019.
The Kingborough region falls below the threshold of their rental stress index, calculated on the RAI system of falling below a score of 100.
Rental stress is characterised by a household that spends close to or more than 30 per cent of their income on rent, according to the report.
Since 2016, the median rental rate in Hobart has grown by 60 per cent.
It is now 11 per cent higher than the Melbourne median, despite the average rental household income being 18 per cent lower, according to the study.
With a score of 102, the average rental household in Greater Hobart is close to being in rental stress (below a RAI score of 100), paying 29 per cent of their total income if renting at the median rate.
Regional Tasmania has a RAI score of 108, which represents a large decline in affordability, to a new historic low, over the last year from a score of 120, a 9 per cent decrease.
The average rental household in Tasmania now faces paying around 28 per cent of their income if renting a dwelling at the median rate, which is nearing the definition of rental stress.
The Tasmanian Council of Social Service (TasCOSS) is calling for the introduction of tighter restrictions surrounding short-term rentals to support Tasmanians experiencing homelessness and housing stress.
TasCOSS CEO Ms Adrienne Picone said the Rental Affordability Index revealed that over the past five years the gap between income and rent has been widening and if this trend continues, the average rental household in Hobart will be in housing stress.
"While we welcome the Tasmanian Government's commitment to build 10,000 more social and affordable homes over the next 10 years, while these houses are being built, we need short- and medium-term measures to support and improve housing outcomes for Tasmanians," Ms Picone said.
“In such a tight rental market, every new available home counts.
"We also echo calls from Shelter Tasmania for limits to be placed on short-stay accommodation, so that whole homes stay in the private rental sector rather than the short-stay sector."
An independently funded report commissioned by Shelter Tas and produced by Emeritus Professor Peter Phibbs, highlighted that within Hobart City, 47 per cent of (Italicised) Airbnb short term rentals previously had a long-term rental history, suggesting that growth in this short-term market was having a direct impact on the long-term rental market.
Kingborough Mayor Cr Paula Wriedt when questioned regarding council imposing limits to short-stay accommodation, responded that, “We need a whole of government response to the housing situation.”
“Kingborough Council is currently working with the other Greater Hobart Councils in contributing to a review of State Planning controls, including proposed State Planning Policies.
“Council is also keeping abreast of the current discussions around short stay accommodation and the work that the City of Hobart has been doing in this space.
“It is important to make sure that any changes in short stay accommodation are targeted correctly towards providing solutions to housing needs, without unintended adverse impacts on sectors such as tourism.
Franklin MP David O’Byrne took aim at the state government stating, “A key part of the solution needs to be for the State Government to increase the supply of social and affordable housing, but this Government just can’t seem to build anything.
“The Huntingfield affordable housing development was announced in 2019, but there’s still no sign of any of the housing that was promised there.”
“Tragically, thousands of Tasmanians are priced out of the private rental market.
“With near-record wait times for scarce social and public housing, many are left with no other option than to couch-surf or sleep rough.”
State Minister for housing Guy Barnett when questioned by the Chronicle whether the state government looking at any restrictions or conditioning surrounding short-term rentals replied that “that is the responsibility of each council”.
He continued, stating that, “The Government has the most ambitious social and affordable housing plan in the State’s history, to build 10,000 homes and dwellings by 2032 and we are on track to deliver 1500 by June 30 next year.
“In additional to building more social and affordable homes there are also more incentives available for Tasmanian property owners with the release of the expanded Private Rental Incentives (PRI) program.
“Under the PRI program, property owners are invited to make their homes available for affordable rent to households on low incomes and who have low or no support needs.”
“The Tasmanian Government is doubling the portfolio with incentives with a further 200 homes under the expanded program.’’
Greens member for Franklin Rosalie Woodruff said this doesn’t go far enough to solve the immediate issue facing thousands of Tasmanians today.
"Every year rent prices skyrocket further, and we hear more heartbreaking stories of Tasmanians forced into hardship and homelessness.
“Despite this, the Liberal Government is doing nothing to protect renters from this terrible situation.
“We recognise and support the plan to build more houses, but most of the government’s planned build is many years away.
“Housing experts warn it could take even longer than the government predicts.
“In the meantime, we can and should take steps today that would help renters.
“These include controlling short stay accommodation, reining in rent increases, and banning evictions for ‘no cause’.
“The government refuses to act on these issues, presumably because it wouldn’t suit the interests of wealthy investors.
“These improvements have been adopted by other states, but Tasmania’s Liberal government has its priorities all wrong.
“They prefer to leave tens of thousands of tenants vulnerable to massive, unreasonable rent increases and unfair eviction.
“We can’t understand, given the extreme day-to-day hardship facing many renters, why the government doesn’t use every possible mechanism to make people’s lives a little easier.
To read the Rental Affordability Index (RAI) report yourself, head to www.sgsep.com.au/projects/rental-affordability-index
