Tasmanian suburbs where buying costs less than renting now

In a significant shift in Tasmania's property market, there are now several suburbs where buying a home is cheaper than renting, with the median monthly mortgage repayment in some areas lower than the median monthly rent.

This trend matters now because Tasmania is experiencing a lifestyle migration boom, with many people moving to the state to take advantage of its natural beauty and more relaxed pace of life. As a result, the demand for housing is increasing, and buyers are finding that in some suburbs, it is more cost-effective to purchase a property than to rent. The state's median house price is around $560,000, but in some areas, such as Launceston, buyers can find more affordable options.

In suburbs like Invermay and Mowbray in Launceston, and Glenorchy and Lindisfarne in Hobart, buyers can find properties with median prices ranging from $420,000 to $520,000. According to data from the Real Estate Institute of Tasmania, these suburbs offer a range of affordable options for buyers, with some properties available for less than $400,000. The University of Tasmania's Hobart campus and the Launceston General Hospital are major employers in these areas, attracting buyers who want to live close to work or study.

According to data from CoreLogic, the median monthly rent in Hobart is around $1,800, while the median monthly mortgage repayment on a $500,000 property is around $1,600. In Launceston, the median monthly rent is around $1,400, while the median monthly mortgage repayment on a $420,000 property is around $1,200. This data suggests that in some suburbs, buyers can save up to $200 per month by choosing to purchase a property rather than rent. As of June 2026, the Tasmanian government's First Home Owner Grant program offers $20,000 to eligible first-home buyers, making it an attractive option for those looking to enter the market.

What's driving the trend?

The trend towards buying being cheaper than renting in some suburbs is driven by a combination of factors, including low interest rates and government incentives. The Tasmanian government's efforts to increase the supply of affordable housing, such as the Affordable Housing Strategy 2020-2025, are also helping to make buying more accessible to first-home buyers. As the property market continues to evolve, it's likely that we'll see more suburbs where buying is cheaper than renting, particularly in areas with high demand and limited supply.

For buyers looking to take advantage of this trend, it's essential to do their research and consider factors such as transport links, schools, and amenities when choosing a suburb. The Tasmanian Property Council and the Housing Industry Association are useful resources for buyers, providing information and guidance on the property market. By understanding the local market and taking advantage of government incentives, buyers can find affordable options and make the most of Tasmania's shifting property landscape.

This article is general information only and is not personal financial or investment advice. Consider your own circumstances and seek licensed professional advice before making financial decisions.