Renters in some Launceston suburbs are facing 15 to 25 per cent rent hikes over 12 months, equating to $90 a week rent rise for those hardest hit.
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Suburbs of Launceston such as South Launceston and Ravenswood have experienced a 23 and 22 per cent rent rise since June last year, while Youngtown renters have been hit with a "huge" 25 per cent rise.
South Launceston renters are now paying an average rent of $450, up $85, while in Ravenswood renters are paying $330, up from $270.
Launceston Benevolent Society chief executive Rodney Spikes said government rent assistance was not keeping up with the rise in rent prices.
He said an increasing number of people were becoming homeless.
"We are seeing people who are ending up on the street, even working people," Mr Spikes said.
"For anyone, even someone who is working and already spending a considerable amount of their income on rentals, these sorts of wage rises are huge for a person to cover. Where do you find an extra 25 per cent to put towards your rental?
"Unfortunately, it is potentially going to get worse."
He said stress on everyday budgets was very real.
"They might be trying to keep up with their increased rent, which puts pressure on other areas of their budget, with increases already coming in other areas such as food, petrol and power, it is just a crisis for a lot of people."
Regional areas are not immune, with some rentals attracting equal rents or more than city suburbs.
Renters in the Northern Midlands suburb of Perth are paying $80 extra up to $455 a week, while in nearby Longford average rents now sit at $445.
In the Meander Valley, Hadspen and Deloraine rentals now command an average $400 a week in rent.
Meander Valley mayor Wayne Johnston said he was surprised that rents had increased that much.
He said rent rises in the city forced people to look further afield for homes.
"All of a sudden there is a demand for rental properties and the price goes up...we are likely comparable with every other municipality in the state," he said.
"We as a council, and every council in the state, is starting to have more serious conversations about what we as councils can do, if anything, to help that situation."
Labor spokesperson for housing Ella Haddad said the new data from PropTrack showed the Liberals were not getting the housing basics right.
"Rent prices have increased across Tasmania in the last year, with rises as high as 68.4 per cent [in Strahan]," she said.
"That's just a breathtaking increase to hit any household budget and it means renters continue to be priced out of housing or plunging people into severe rental stress. For some it means joining the never-ending social housing waiting lists, and eroding their dream of home ownership."
Planning Minister Michael Ferguson said there is no silver bullet to address the issues.
"The best way to alleviate these pressures is to build more houses and give more options to get people into home ownership, and that's exactly what we're doing," he said.
"We have also taken strong action in the 2022-23 Budget to ease the cost of living burden on Tasmanian households, including for both home owners and renters. This includes $305 million in concessional support for vulnerable Tasmanians for water, electricity and rates, and our Winter Energy Assistance Package to provide targeted support to those most in need of help with their power bills."
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