House prices and a "near impenetrable" private rental market has locked thousands of Tasmanians out of the housing market and exposed the ugly side of the property boom.
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The Real Estate Industry of Tasmania's latest quarterly report showed median house prices in Tasmania had ballooned to $600,000 and the data shows first-home buyers feeling the crunch.
Real Estate Institute of Tasmania state president Michael Walsh said the figures showed more could be done to support first-home buyers to get their foot in the door and onto the property ladder.
Those sentiments were echoed by Tasmanian Council of Social Services chief executive Adrienne Picone, who said to meet demand the government needed to provide 1000 affordable homes per year. She said "every suburb" needed new homes.
"With house prices continuing to increase at an unaffordable rate, thousands more Tasmanians have found themselves in acute housing stress," Ms Picone said.
"A near impenetrable private rental market with historically low vacancy rates has only compounded the problem."
However, Housing Minister Michael Ferguson said the state government had a "comprehensive plan" to address housing.
"Increasing housing supply to meet demand and to lower some of the costs of ownership are the best ways to put downward pressure on prices - not increasing taxes or trying to control the market," Mr Ferguson said.
A snapshot of buyers from the quarter report shows first-home buyers made up only 15 per cent of buyers, with those reaping the benefits of the boom people with two or more properties.
Those with two or more properties made up 51 per cent of the market, with investors coming in second at 21 per cent.
He said the problem was exacerbated by the crush on the rental market, as mainland expats returned to Tasmania in droves.
"When you've got a vacancy rate that's basically 1 per cent and you've got people coming into your office and knocking on the doors, that's a problem," he said.
Mr Walsh said more government investments and incentives for investors to buy properties for the rental market was needed.
Ms Picone said governments at all levels had an obligation to explore every option and pull every lever to ensure all Tasmanians had a secure place to sleep at night.
Mr Ferguson said the government had put in place many initiatives to support housing in Tasmania.
"Our comprehensive housing plan includes initiatives to help Tasmanians get into the housing market, such as the First Home Owners Grant; whilst also remaining focused on increasing housing supply, which is the only way to address the issue of housing affordability."
The real estate report was released this week.
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