Hobart charts a path out of housing crisis

City of Hobart Council says unlocking underutilised land, reducing financial barriers, and piloting medium-density housing projects have been identified as key strategies to tackling the city’s housing crisis.

The Hobart Housing Forum, held in December last year, brought together more than 80 experts from across the housing sector, including government representatives, community organisations and developers.

The findings from the in-depth discussions on housing affordability and supply challenges which took place at the event were released in the Hobart Housing Forum Engagement Report in late February. 

Lord Mayor, Anna Reynolds said the findings underscore the need for urgent action and collaboration between all levels of government and industry stakeholders. 

“Everyone in the room acknowledged that Hobart has a housing affordability crisis but there’s a huge number of factors causing this,” said Lord Mayor Reynolds.

“The cost of getting building materials to our island state is one major reason for development costs being higher here than on the mainland.

“While the forum identified issues that have been raised before, it was good to see some fresh new ideas from around the country presented and discussed.”

The forum’s engagement report highlights several key priorities: 

• Development of underutilised land: Maximising the use of vacant and underdeveloped sites emerged as a top priority to increase housing supply. 
• Pilot projects for higher-density housing: There was strong support for showcasing mixed-tenure, medium-density developments to build community and investor confidence in new housing models. 
• Reducing financial barriers: Land and infrastructure costs were identified as major obstacles, with calls for targeted incentives and subsidies to make housing more viable. 
• Strategic land use planning projects: Attendees emphasised the need to investigate zoning to deliver permitted pathways for appropriate higher density housing.
• Workforce development: Concerns were raised about a declining construction workforce, highlighting the need for training and apprenticeship programs to sustain future housing projects. 

Infrastructure Tasmania’s Strategic Architectural and Urban Design Advisor, Scott Balmforth said the forum showed that a “holistic approach to housing” is needed now and in the future.

“We heard there is currently land available within Greater Hobart and willing existing and new housing providers, but the economic conditions to deliver infill medium density housing is the primary challenge,” Mr Balmforth said.

“It was interesting to hear of the concern towards a declining construction industry workforce, meaning we need to build up young people entering the industry now to be able to meet the future supply of housing.”

Insights from the forum will directly inform the development of the Council’s new Housing Strategy, which will outline concrete actions to improve housing accessibility and affordability. 

Council strategic planner, Joanne Hickman said the forum was an important step towards shaping future policies. 

“The council remains committed to addressing the housing challenges facing our community and will use the findings from the forum, along with further research and stakeholder engagement, to develop a housing strategy,” Ms Hickman said.

“This strategy will provide information on the current situation regarding housing in Hobart and identify ideas which will then be developed into actions that the council can deliver … to facilitate an increase in housing supply.”

The Council says it will continue to engage with industry experts and the community as it refines the Housing Strategy, which is expected to be released for public consultation in late 2025.

The full engagement report from the Hobart Housing Forum is available on the City of Hobart website: hobart-housing-forum-engagement-report.pdf