New analysis finds nearly all of the Tasmanian capital's residential land is subject to building constraints
Hobart has been identified as the most restrictive capital city in Australia for planning, with the Australian Zoning Atlas finding 97% of its residential land subject to constraints that limit new housing construction.
The finding places Hobart ahead of all other Australian capital cities on the measure of planning restrictiveness.
The data emerges as local media reports renewed divisions among City of Hobart councillors, with elected members again at odds over council priorities.
"Hobart has now been independently ranked as the hardest capital city in the country to build a home in, and today the story out of the Town Hall is councillors arguing with each other, rather than being focused on what really matters for Tasmanians," said Benjamin Price (pictured right), executive director at the Housing Industry Association (HIA).
"Families looking for somewhere to live do not care who said what in the council chamber. They care about whether they can get a roof over their heads, and right now, the numbers say Hobart is making that harder than anywhere else in Australia."
HIA's 2026 Planning Blueprint Scorecard rated Tasmania's planning system 2.0 out of 5.0, describing it as mediocre and lacking strategic focus on residential land supply and higher-density housing in well-located areas.
"The fundamentals of a planning system are here, but the system needs refinement, resourcing and the political will to actually get houses built," Price said. "That work does not happen while the people responsible for local planning decisions are busy fighting with each other in Town Hall."
He added that the city's restrictive settings were constraining supply at a particularly difficult time for the state.
"If we are serious about housing affordability, freeing up where and how we can build in Hobart has to be part of the answer," Price said.
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