Is Hobart an affordable place to live? A typical resident spends around 24.6% of income on rent and 8.9% on food. That leaves approximately 66.5% of income available for savings and daily expenses.
The Urban Stress Index (USI) provides a structured way to evaluate cost-of-living pressure in Hobart. By combining housing and essential food costs, it highlights how much income is required to maintain a basic standard of living relative to local wages.
| Item | Monthly | % of Income |
|---|---|---|
| Income | 7,770 | — |
| Rent (1BR) | 1,911 | 24.6% |
| Essential Food | 689 | 8.9% |
| Remaining | 5,170 | 66.5% |
Use our cost of living calculator to estimate your own disposable income in Hobart.
Hobart records an Urban Stress Index of approximately 33.5, placing it in the “Stretched” category and slightly above cities such as Adelaide and Perth. Housing absorbs about 24.6% of a typical monthly income, while essential food costs account for roughly 8.9%, one of the higher food shares among Australian cities. Although rents in Hobart are lower in absolute terms, the city’s lower income base results in a relatively tighter overall cost structure, pushing its USI above several mainland counterparts.
The underlying economic structure helps explain this pattern. Hobart has a smaller and more tourism-driven economy, with significant activity in hospitality, public services, and niche sectors such as Antarctic research and environmental science. While these industries contribute to the city’s unique economic identity, they generally do not produce the same level of wage strength seen in resource-driven cities like Perth or administrative centres like Canberra. As a result, even moderate living costs can translate into a higher relative burden on income.
Within Australia, Hobart’s affordability profile sits between Adelaide and Brisbane. Its housing burden is comparable to other mid-tier cities, but its higher food cost share and lower income levels push overall stress slightly higher. This creates a situation where Hobart may appear affordable in terms of rent alone, yet still feel financially constrained once all essential expenses are considered.
Compared internationally, Hobart remains less pressured than high-stress cities in Canada or parts of Europe, where USI levels often exceed 50. However, it does not benefit from the same income support seen in larger Australian cities, which limits its relative advantage. Hobart therefore represents a smaller-city affordability model where costs are moderate, but income constraints play a more decisive role in shaping overall financial pressure.
The Urban Stress Index (USI) measures how much of a typical income is spent on housing and essential food.
USI = Housing burden + Food cost share.
See full methodology here.
Housing data for Australian cities are based on the Domain Rental Report (September 2025). Median advertised rents for units/apartments are used as the housing proxy. Because these figures include a mix of studio, one-bedroom, and two-bedroom dwellings, a 0.9 adjustment is applied to approximate the cost of a typical one-bedroom unit for a single-person household.
Income data are based on Average Weekly Earnings, Australia, May 2025 published by the Australian Bureau of Statistics. Median weekly ordinary time earnings are converted into monthly gross salary estimates.
Food cost estimates are derived from a standardized meal-price proxy designed to approximate essential living costs for a single person. The measure is based on local restaurant price benchmarks and is converted into a monthly food cost estimate using a consistent methodology across cities.
For full explanation of assumptions, please see the Methodology and Sources pages.
Other cities in Australia:
Cities with similar affordability outside Australia: