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That puts Hobart ahead of every other capital in the country.
The finding lands while reporting in today’s media highlights the latest round of infighting inside the City of Hobart, with councillors again at odds with one another.
"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," HIA Executive Director Benjamin Price said.
"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 own 2026 Planning Blueprint Scorecard rated Tasmania's planning system 2.0 out of 5.0, describing it as mediocre and lacking a strategic focus on residential land and well-located higher density housing.
"The fundamentals of a planning system are here, but the system needs refinement, resourcing and the political will to actually get houses built. That work does not happen while the people responsible for local planning decisions are busy fighting with each other in Town Hall."
Mr Price said Hobart's restrictiveness was a handbrake on supply at a time when the state can least afford it.
"If we are serious about housing affordability, freeing up where and how we can build in Hobart has to be part of the answer."
The Northern Territory's housing market continues to outperform many parts of the country, with strong dwelling price growth, rising building approvals and sustained investment activity demonstrating confidence in the Territory's future.
HIA commented on the Explanation of Intended Effect for Standard and model conditions of consent (the EIE). It is understood the EIE explains the proposed amendments to State Environmental Planning Policy 2021 that will give effect to consistent conditions of consent for residential development across the state.
Home building approvals in Tasmania have climbed over the past year, though the numbers remain well below the level needed to meet demand.
The latest building approvals data shows the ACT residential building market remains subdued, with detached housing continuing to struggle and the momentum that emerged in the apartment market during 2025 now showing signs of fading.