M:
Research
Spring/26 Hobart Residential
Headlines Hobart recorded a higher number of residential sales over the past year, whilst homes are taking less time to sell than one year ago.
The number of residential rental homes in Hobart is currently undersupplied. Hobart rental vacancy was recorded at 1.1% at the end of Q2/26.
Less Hobart homes have been newly listed for sale than this time last year. Overall, the total number of homes listed for sale in Hobart is up on last year.
Residential rents across Hobart trended 8.3% above last year's weekly rate, with rents forecast to rise 7% at the end of 2026.
Hobart residential property prices have trended 1.5% higher than a quarter ago, with 11.0% annual growth. Price growth of 2% is forecast by the end of 2026.
The construction delivery of new homes in Tasmania was 13.1% below a year ago, whilst the cost to build in Hobart escalated 3.5%.
Economy Key drivers
Interest rate
Spring/26
4.35%
Interest rates were last set at 4.35% after the Reserve Bank of Australia (RBA) lifted the cash rate target by 25 bps in May 2026. At this time, most lenders adjusted their mortgage lending rates for homeowners and investors accordingly. By setting borrowing costs, interest rates strongly influence both housing affordability and demand for home loans. Westpac forecasts the cash rate target to be 4.60% by the end of 2026 and 4.10% in 2027, with inflation, energy costs and the global economy being closely monitored as a leading indicators for any possible adjustments during this time.
Population growth
5.3%
Unemployment
Hobart's unemployment rate of 5.3% at the end of Q2/26, was tracking higher than the Australia average at 4.3%. Looking back, the five year average unemployment rate has been 3.9% across Australia. Employment conditions shape the ability for a household to enter the housing market and service mortgages over time, with a healthy labour market typically below 5%. With economic headwinds and technological disruption to a growing number of industries on the horizon, the RBA forecasts unemployment to soften to 4.7% by the end of 2027.
+0.2%
+3.5%
New build costs
Population growth has ramped up housing demand, placing pressure on existing housing supply and infrastructure. Hobart's total population growth was 0.2% in 2025. This came after the population rebounded 0.2% in 2024, after growth had slowed to 1.0% in 2022, as a consequence of slower migration throughout the pandemic. The Australian Bureau of Statistics (ABS) have projected the long-term population growth for Hobart at 1.0% per annum.
The construction delivery of new homes in Tasmania was 13.1% below the last reported year, whilst residential building approvals trended 15.5% higher. Over this time, Hobart house approvals were up 23.3% and apartment approvals were 227.9% higher. The cost to build in Hobart escalated 3.5% in 2025 according to WT, which was below the 7.1% five year average. Considering the economic outlook, WT forecasts building escalation to lift by 3.6% in 2026 and rise 4.0% in 2027.
Economic outlook, Q2/26
2021
2022
2023
2024
2025
2026F
2027F
Interest rate target
0.10%
3.10%
4.35%
4.35%
3.60%
4.60%
4.10%
Economic growth in Australia
4.9%
3.3%
1.3%
1.2%
2.6%
1.5%
1.7%
Unemployment rate in Australia
4.0%
3.3%
3.8%
3.8%
3.9%
4.7%
4.7%
Population growth in Hobart
1.0%
0.4%
0.2%
0.2%
1.0%
1.0%
1.0%
Building cost escalation in Hobart
10.2%
10.5%
6.0%
5.5%
3.5%
3.6%
4.0%
Source: McGrath Research, RBA, WT, ABS, Westpac
2
Residential sales Update
Sales
Spring/26
+14%
Rolling tally of annual residential sales Hobart
Hobart recorded a higher number of residential sales over the past year. Sales trended up 14% with a total of 3,986 transactions in the year ending Q2/26, outpacing the five year annual average of 3,643 sales. A change in sales activity can be influenced by interest rates, economic confidence, housing supply, government policies and shifting population trends which impacts buyer demand. Isolating the 1,005 sales in the Q2/26 quarter, this was 1% below the previous quarter, whilst lower than the 912 five year quarterly average.
Source: McGrath Research, Cotality
Share of state annual sales
38%
Hobart made up 38% of the total number of annual residential sales recorded in Tasmania at the end of Q2/26. This was higher than one year ago when the proportion was 37%, whilst above the 34% share recorded five years ago. A change in residential sales activity over the year to Q2/26 saw Hobart (+14%) outpacing Regional Tasmania (+12%).
Share of state annual sales, by number Hobart Source: McGrath Research, Cotality
Hobart, Q2/26
Houses
Apartments
Residential
Number of homes sold in past quarter
774
231
1,005
Change from a quarter ago
-5%
16%
-1%
Number of homes sold in past year
3,186
800
3,986
Change from a year ago
15%
9%
14% Source: McGrath Research, Cotality
3
Residential sales, by local area Based on the geography boundary defined by the Local Government Area
Spring/26
Houses
Apartments
Number sold in past quarter
Change from a quarter ago
Number sold in past year
Change from a year ago
Number sold in past quarter
Change from a quarter ago
Number sold in past year
Change from a year ago
Brighton
59
13%
255
-1%
8
-38%
52
37%
Clarence
193
-8%
865
7%
48
9%
199
5%
Derwent Valley
37
-23%
204
10%
0
na
15
0%
Glenorchy
166
-3%
740
23%
62
41%
260
13%
Hobart
128
-19%
562
8%
78
39%
346
1%
Kingborough
142
5%
552
6%
30
-19%
150
33%
Sorell
85
6%
363
9%
5
150%
26
-28%
Hobart Q2/26
Source: McGrath Research, Cotality
4
Residential sales Update
Sales velocity
Spring/26
-13 days
Average days on the market Hobart
Hobart homes are taking less time to sell than one year ago. Residential homes averaged 18 days on market in Q2/26, from the time they were listed, to the day they went under contract. This average duration was 22 days the quarter before (-4 days) and 31 days one year ago (-13 days). A lower number of days on market typically indicates that homes are selling more quickly, often reflecting strong buyer demand and well‑priced, desirable properties. In contrast, a higher number of days on market may signal slower buyer activity or that homes are priced above current market expectations. Looking back over the past five years, it has taken 23 days on average, to sell a home.
Source: McGrath Research, Cotality
New listings Hobart
-9.6%
-24.2%
Total listings Hobart
Less Hobart homes have been newly listed for sale than this time last year. Newly advertised listings in Hobart were 9.6% lower in the month of June 2026 than the equivalent period last year, according to Cotality. This change in new listings trended below the Australian average of 2.1% and below the 2.0% across Australian capital cities.
Overall, the total number of homes listed for sale in Hobart is up on last year. Hobart's total number of listings in the month of June 2026 were 24.2% above the equivalent period last year, according to Cotality. By comparison, the Australian average change for total listings was 8.4% and across Australian capital cities was 15.9%.
Hobart, Q2/26
Houses
Apartments
Residential
Number of days homes on market
18 days
17 days
18 days
Change from a quarter ago
-4 days
-4 days
-4 days
Change from a year ago
-13 days
-14 days
-13 days Source: McGrath Research, Cotality
5
Residential sales velocity, by local area Based on the geography boundary defined by the Local Government Area
Spring/26
Houses
Apartments
Number days on market
Change from a quarter ago
Change from a year ago
Number days on market
Change from a quarter ago
Change from a year ago
Brighton
15 days
-8 days
-33 days
13 days
-5 days
-11 days
Clarence
27 days
-1 day
-4 days
16 days
-2 days
-20 days
Derwent Valley
28 days
-15 days
-37 days
na
na
na
Glenorchy
21 days
-3 days
-10 days
19 days
-2 days
-14 days
Hobart
27 days
+4 days
+0 days
26 days
-1 day
-2 days
Kingborough
36 days
+9 days
+8 days
14 days
-9 days
-20 days
Sorell
37 days
+2 days
-10 days
na
na
na
Hobart Q2/26
Source: McGrath Research, Cotality
6
Residential prices Update
Median price
Spring/26
$776,300
Tracking median prices Hobart
Hobart residential property prices have trended higher than a year ago. Prices across Hobart rose by 11.0% in the year ending Q2/26, with a 1.5% increase recorded in the most recent quarter. As a result, the median residential value reached $776,300. Residential values shift with changes in interest rates, supply and demand, economic conditions, population trends and local infrastructure which influences market appeal and buyer capacity. Annual residential price growth has averaged 8.0% over the past five years.
Source: McGrath Research, Cotality
Price outlook
+2%
Forecast for median prices Hobart
Looking ahead, Hobart residential prices are likely to rise over the coming year. McGrath Research forecast Hobart residential property prices to increase by 2% at the end of 2026, followed by a further 1% rise in 2027. Residential price forecasts consider borrowing capacity, the balance of supply and demand, economic conditions, population trends and local infrastructure which shapes affordability, demand and market direction.
Source: McGrath Research
Hobart, Q2/26
Houses
Apartments
Residential
Median price
$806,900
$593,700
$776,300
Change from a quarter ago
1.2%
3.4%
1.5%
Change from a year ago
11.1%
9.7%
11.0% Source: McGrath Research, Cotality
7
Residential prices, by local area Based on the geography boundary defined by the Local Government Area
Spring/26
Houses
Apartments
Median price
Change from a quarter ago
Change from a year ago
Median price
Change from a quarter ago
Change from a year ago
Brighton
$737,600
5.8%
12.7%
$485,900
2.9%
13.0%
Clarence
$927,200
2.5%
11.4%
$653,500
5.1%
14.9%
Derwent Valley
$575,200
-1.6%
16.6%
$381,700
-5.9%
-20.5%
Glenorchy
$738,100
5.4%
20.2%
$509,100
1.9%
7.2%
Hobart
$1,046,400
0.8%
7.8%
$675,600
2.7%
3.4%
Kingborough
$923,500
-0.2%
8.1%
$596,600
2.7%
-1.1%
Sorell
$749,400
-1.1%
10.1%
$621,700
8.9%
13.4%
Hobart Q2/26
Source: McGrath Research, Cotality
8
Residential rents Update
Vacancy
Spring/26
1.1%
Residential rental vacancy Hobart
The number of residential rental homes in Hobart is currently undersupplied. Hobart rental vacancy was recorded at 1.1% at the end of Q2/26, falling 10 bps in the quarter whilst falling 70 bps over the past year according to REIA. Generally, around 3% vacancy is considered a balanced market between rental supply and demand. Below this equilibrium is considered to be an undersupplied pool of rental homes, which places upward pressure on weekly rents. For the past five years, Hobart residential rental vacancy has averaged 1.5%.
Source: McGrath Research, REIA
Yield
+9 bps
Gross rental yield Hobart
Hobart gross rental yields have trended higher over the past year. Residential yields lifted 6 bps in the Q2/26 quarter to be 4.27% across Hobart, whilst 9 bps higher compared to a year ago. A yield pushing beyond 4% is more desirable for investment properties located in capital cities, while below this, tends to show higher property values relative to rental income. Hobart gross rental yields have averaged 4.07% over the past five years.
Source: McGrath Research, Cotality
Hobart, Q2/26
Houses
Apartments
Residential
Gross rental yield
4.19%
4.78%
4.27%
Change from a quarter ago
+4 bps
+18 bps
+6 bps
Change from a year ago
+12 bps
-7 bps
+9 bps Source: McGrath Research, Cotality
9
Residential rents Update
Median weekly rent
Spring/26
$585
Tracking median weekly rents Hobart
Residential rents across Hobart trended above the weekly rate recorded a year ago. Hobart rents rose 0.9% in Q2/26, whilst increasing 8.3% over the past year, to stand at a median $585 per week. Rent changes are driven by rental supply, tenant demand, migration trends, economic conditions and investor activity which together impact the vacancy rate. For the past five years, Hobart rents grew an average 4.9% per annum.
Source: McGrath Research, Cotality
Rental outlook
+7%
Forecast for median rents Hobart
The Hobart residential market is continuing to experience upward pressure on weekly rents. McGrath Research forecast Hobart rents to rise 7% at the end of 2026, with a further 4% rise likely in 2027. The rental forecast takes into consideration new and existing supply levels, population changes, economic conditions and upgraded local infrastructure which can influence future tenant demand, vacancy rates and rental growth.
Source: McGrath Research
Hobart, Q2/26
Houses
Apartments
Residential
Median weekly rent
$600
$510
$585
Change from a quarter ago
0.8%
2.0%
0.9%
Change from a year ago
9.1%
4.1%
8.3% Source: McGrath Research, Cotality
10
Residential rents, by local area Based on the geography boundary defined by the Local Government Area
Spring/26
Houses
Apartments
Median weekly rent
Change from a quarter ago
Change from a year ago
Median weekly rent
Change from a quarter ago
Change from a year ago
Brighton
$525
2.9%
9.4%
$465
3.3%
4.5%
Clarence
$620
3.3%
9.7%
$525
0.0%
0.0%
Derwent Valley
$595
21.4%
32.2%
$445
14.1%
6.0%
Glenorchy
$595
2.6%
13.3%
$480
4.3%
3.2%
Hobart
$695
2.2%
16.8%
$535
0.0%
4.9%
Kingborough
$660
1.5%
10.9%
$515
3.0%
7.3%
Sorell
$555
3.7%
7.8%
$480
3.2%
6.7%
Hobart Q2/26
Source: McGrath Research, Cotality
11
Definitions
Hobart Hobart refers to the Greater Capital City Statistical Area or ‘Greater Hobart’ as defined by the Australian Bureau of Statistics.
Local Government Area A Local Government Area (LGA) is a defined geographic region administered by a local council responsible for community services, planning, and local regulations.
Interest rate target The cash rate target is the interest rate set by the Reserve Bank of Australia to influence borrowing costs, economic activity, and inflation across the economy.
Economic growth Economic growth is the rise in a country’s production of goods and services over time, reflecting how much the economy is expanding.
Unemployment The unemployment rate measures the share of people in the labour force who are willing and able to work but currently without employment.
Population growth Population growth increases the number of people needing homes, boosting housing demand and influencing supply, prices, and future development needs.
Sales Sales of residential homes refers to the number of houses or apartments sold within a specific area and time period, most commonly being reported within the quarter or year.
Auction clearance rate Auction clearance rates show the percentage of properties sold at auction compared with those taken to auction over a given period.
Sales velocity The length of time a property spends on the market from listing to exchange, with the duration measurement represented as being number of days.
Listing New listings are recently advertised homes, while total listings represent all properties currently for sale in the housing market at a given time.
Median price The median price is the midpoint of all property sale prices, where an equal number of homes sell above and below that value.
Vacancy Total residential vacancy refers to the proportion of rental properties unoccupied and available for tenants at a specific point in time.
Yield Gross rental yield is the annual rental income of a property divided by its market value, showing the return before expenses.
Median weekly rent Median weekly rent is the midpoint of all weekly rental prices, with half of properties renting for more and half for less.
Guiding you home
Michelle Ciesielski National Head of Research, McGrath Research www.mcgrath.com.au/research
Find an agent © McGrath Limited 2026 Disclaimer: This report is published for general information only and not to be relied upon in any way. Although high standards have been used in the preparation of the information, analysis, views and projections presented in this report, no responsibility or liability whatsoever can be accepted by McGrath Limited for any loss or damage resultant from any use of, reliance on or reference to the contents of this document. As a general report, this material does not necessarily represent the view of McGrath Limited in relation to particular properties or projects. Reproduction of this report in whole or in part is not allowed without prior written approval of McGrath Limited. McGrath trademarks are property of McGrath Limited.