A Perfect Storm Brewing In Tassie Is Feeding The Housing Crisis


Article heading image for A Perfect Storm Brewing In Tassie Is Feeding The Housing Crisis


Across Tasmania, one in every two households are struggling to pay their mortgage or rent.

Digital Finance Analytics have released their latest stats revealing 56.8% of Tassie households were in mortgage stress during May.

Director of DFA, Martin North said a "perfect storm" with rising property prices, low wage growth and interstate buyers all exacerbating the problem. 

"This is not just a COVID-created issue. This is going to continue because there's no prospect of income growth that I see on the horizon, other than maybe matching inflation but it's not going to be sufficient to cover any of the real issues that we've got here. So, unfortunately, [there's] no simple way out of this."

- Martin North


However, there may be some relief in sight for Hobart renters with 26 new homes almost ready for tenants in Rosetta. A part of Canberra's $30 million promise to build 100 new homes in Hobart by mid next year, Kim Bomford from Housing Choices Tasmania says it's not enough.

"There is a pressure point which is at the moment quite tricky and supply is not a quick fix"

- Kim Bomford

The Tasmania Briefing

The State Government meanwhile stand firm on their approach to improving the current housing crisis, which includes the $30,000 First Home Owners Grant and stamp duty concessions, the delivery of 3500 new social and affordable homes by 2027 and an additional $10 million investment into the HomeShare program.

But, Mr North has deemed the state government needs to adjust policy settings to remedy the issue.

Join Tom Tilley with regular rotating co-hosts Jan Fran, Annika Smethurst and Jamila Rizvi on The Briefing, Monday - Saturday, for the day's headlines and breaking news as well as hot topics and interviews. Available on Listnr.

10 June 2021

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