Tasmanian budget: cash, incentives to bolster stocks of low-cost housing

Tasmania will build an extra 1500 homes to be rented at low cost to those in need as it grapples with a shortage of affordable housing.

The state budget includes $125 million over five years — including $25m in the coming financial year — to boost public housing, as well as measures to encourage property owners to rent out homes rather than list them on Airbnb.

In Hobart, house prices jumped 20 per cent in the past 12 months while medium rents increased 8 per cent in the same period. Quality rentals are hard to find.

Treasurer Peter Gutwein said the shortage of affordable housing was a “growing pain” caused by the state’s economic resurgence.

“Strong population and employment growth has led to a more competitive market for housing,” Mr Gutwein said. “Hobart in particular has seen much stronger price growth and this has flowed through to its rental market, with rental vacancy rates at historically low levels.”

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