More than half of the homes will be set aside for first-home buyers
The Commonwealth and Tasmanian governments have agreed a new housing package expected to facilitate about 4,000 new homes across the state, with up to 2,101 dwellings earmarked for first home buyers.
Under an in‑principle agreement locking in Tasmania’s share of the Commonwealth’s 100,000 homes for first-home buyers program, the federal government will provide $165 million in support – $115 million in concessional loans and $50 million in grant funding – alongside land and funding contributions from the Tasmanian government and local councils.
BREAKING: We’ve struck a deal with the Tasmanian government to unlock over 4,000 new homes, including over 2,000 just for first home buyers and vital enabling infrastructure.
— Clare O'Neil MP (@ClareONeilMP) April 20, 2026
A key component of the deal is enabling infrastructure in Brighton, Sorell and Meander Valley, which is forecast to unlock roughly 2,700 lots, nearly 1,100 of which are to be reserved for first-home buyers under the program. The arrangement also provides for concessional loans of up to $80 million to support construction of more than 2,000 homes for first-home buyers, mainly around Hobart, Launceston, Devonport and Burnie.
A further concessional facility of up to $35 million will allow Tasmania to start infrastructure works sooner than would otherwise be possible under normal state budget processes. The first homes under the agreement are scheduled to reach the market from the 2027–28 financial year.
The agreement forms part of the Commonwealth’s broader $45 billion housing agenda, which includes deposit schemes to accelerate home ownership, planning and approvals reforms, support for construction training, and investment in social and affordable housing. Canberra says more than 3,800 Tasmanians have already used the 5% deposit guarantee, while national initiatives such as the Housing Australia Future Fund are intended to deliver 55,000 social and affordable homes, including over 600 in Tasmania.
Earlier this week, the federal and ACT governments reached an agreement to fast‑track about 4,900 new homes across the territory, including more than 1,700 reserved exclusively for first‑home buyers.
Federal housing minister Clare O’Neil framed the Tasmanian package as part of efforts to prioritise owner‑occupiers in a tight market. “We’re determined to make it easier for young people and first home buyers to achieve the dream of owning a home – with no competition from investors,” she said.
“Thanks to this agreement we’ve reached with the Tasmanian Government, there will be thousands more Tasmanians getting the keys to their own home. We know the housing market is tough in Tasmania, and we want Tasmanians to know that Labor has got your back.”
Tasmania’s minister for housing, Kerry Vincent (pictured right), said the additional supply would have state‑wide benefits and support home ownership aspirations. “Every single house built in Tasmania makes a difference, and this partnership is a huge win for the entire state,” he said.
“We welcome this investment by the Australian government into Tasmania, and I look forward to thousands of extra homes being built in high growth areas, especially the 2,101 being built for first home buyers. We want as many Tasmanians as possible enjoying the security of owning their own home and delivering more supply is central to achieving this goal.”
Industry bodies have broadly endorsed the agreement, highlighting its emphasis on lifting supply and funding enabling works.
The Tasmanian division of the Property Council of Australia said the decision would assist households facing difficulty securing adequate housing and would help translate approvals into completed dwellings.
“The announcement is focused on one thing that genuinely improves affordability: increasing the supply of homes,” said Michael Kerschbaum, interim executive director at the Property Council of Australia. “Too often, projects stall because roads, services and utilities are not in place. By funding enabling infrastructure upfront, governments can remove major delays and accelerate delivery.
“This deal sends a clear signal that both the State and Federal level of government are serious about addressing the structural issues holding back housing supply, and therefore affordability. A coordinated approach across planning, infrastructure and delivery is essential, which is why the Property Council strongly supports today’s announcement.”
Master Builders Tasmania also welcomed the package, describing it as consistent with similar agreements in other jurisdictions and as a response to long‑running calls for more infrastructure spending.
“Whether roads, sewage, water or transport systems, it is all critical to bringing more Tasmanian homes online faster,” said Jenna Cairney, chief executive officer at Master Builders Tasmania. “When this deal is executed, it will support Tasmanian builders from home building to civil construction flowing onto non residential activity.
“Our recently released forecasts predicted an almost 14,000 home shortfall against Tasmania’s share of the National Housing Accord. The industry appreciates these proactive steps towards closing that gap.”
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