A UTAS report has found a statewide increase in house prices

The University of Tasmania's Housing and Community Research Unit have published an updated report on current conditions in the Tasmanian housing market.

The report showed the median prices of houses in Tasmania has continued to soar, with property in Burnie seeing a median price increase of 35.4 per cent between February 2019 and February 2021.

The median house price in Launceston increased by 4.5 per cent to $420,000 in the March 2021 quarter, while prices in the North-West increased to $379,000- an increase of 12.1 per cent.

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The report said with interest rates at an all time low, there were strong incentives to purchase property in Tasmania.

However, in a letter to The Examiner, University of Tasmania Professor of Sociology Keith Jacobs said the report highlighted an acute shortage of social housing dwellings in the state.

The report found that in March of this year, there were 4006 applicants on the Tasmanian Housing Register, an increase of 11.9 per cent from 2020.

"The overall trend was clear. Far too many low-income Tasmanian households struggled to meet their housing costs," Professor Jacobs said.

The report found that vacancies for private rental properties were amongst the lowest of all Australian cities and had been compounded by landlords renting out their property on short stay accommodation platforms.

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In the 2021 election campaign, the state government committed $280 million to deliver 2000 new dwellings over the next four years, adding to an earlier commitment to build 1500 dwellings over three years.

Minister for State Development, Construction and Housing Michael Ferguson said the state government had a comprehensive approach to increase housing supply.

However, the UTAS report queried the state government's commitment to providing 3500 new homes in the next four years, citing the sale or demolition of other social housing properties as a hindrance.

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Mr Ferguson said the government predicted 50 houses will be sold per annum over the next two years.

"Based on that it is expected that the total net increase of social housing by 2027 will be 3,628 dwellings," he said.

"It is important to note that while we build new public housing, the small number of older properties sold will still be utilised by families and remain in the state's housing stock."

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