Tasmanian News

Buy a house, rather than rent

Housing Hobart

A new report has found buying a house is actually cheaper than renting in Greater Hobart.

The ANZ and Corelogic report found the percentage of income it took to service a mortgage was 32.8% compared to 38.5% to rent, making parts of Hobart the most expensive regions in the country.

Brighton, Sorell, Dodges Ferry and areas north west of Hobart are regions where a mortgage was found to be a more affordable option.

Chief Economist at realestate.com.au Nerida Conisbee says it's not surprising, with population growth driving demand.

"One of the things that has happened in Hobart is that the economy is changed, there has been a surge in population growth, I think the population growth in Hobart has been one of the strongest levels in over 20 years, but there has been very little building taking place, so we have seen a surge not only in rents but also in pricing," she said.

She says the growth is unprecedented in Hobart.

"If you have a look across Australia, we are seeing stable rents but we are seeing declining rents. In Hobart rents have surged 9% over the past 12 months, so it's not just a high rate of growth from a nationwide perspective, but a global growth as well," she said.

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