Rental affordability in greater Hobart is falling.

NEW data released today will reveal the dire state of Hobart’s home-rental market.

Hobart has been ranked the second least affordable city in Australia behind only Sydney in the biannual Rental Affordability Index.

The report found affordability in greater Hobart has fallen to its lowest level since the September quarter of 2012, with the average household spending 28 per cent of its income on rent.

Experts agree that with rents so high, many Tasmanians are struggling to afford essential items, such as food or transport.

Use this interactive tool to help find the most affordable rental suburbs in your city within 10km of the CBD.

The index is an indicator of the price of rents relative to household incomes, based on new rental agreements.

It found Battery Point (7004) was greater Hobart’s least affordable postcode in the June quarter, followed by Sandy Bay, Dynnyrne (7005), Grasstree Hill, Otago, Honeywood, Old Beach (7017), Taroona, Bonnet Hill (7053) and South Hobart (7004).

Renters in those suburbs are spending between 32 and 36 per cent of their income on rent, with the median gross income for rental households in greater Hobart $60,900 a year. This percentage puts these suburbs into the report’s “unaffordable” category.

Huon Valley resident and SGS Economics & Planning partner Ellen Witte said Hobart’s rental affordability was significantly lower now than at the same time last year.

Ms Witte said this was in line with the property market’s sales volume and price rises.

“For a part-time working single parent, they would pay 43 per cent of their income on rent. That is well over the threshold of 30 per cent, which is the tipping point between moderate housing stress and unaffordable rent,” she said.

“At that point, you would have less ability to pay for food, transport, education and medical needs.”

Real Estate Institute of Tasmania president Tony Collidge said nobody was prepared for the impact the recent growth and demand for housing in southern Tasmania would have on prices and the rental market.

“I am disappointed by the delays in planning approvals for commercial developments that could help alleviate some of the rental shortage in the inner-city areas,” he said.

Mr Collidge suspects greater Hobart has a rental property shortage of 2000 to 3000 dwellings because of a combination of the growing affordable housing shortage, population growth and the need for significantly more student accommodation.

Shelter Tasmania executive officer Pattie Chugg said the index was evidence that housing stress was entrenched in Tasmania, affecting both young and old people.