When we started dreaming about a move to Tasmania, one of the big drawcards was affordability. Housing looked cheaper, the air was cleaner, and the pace of life slower – surely our wallets would thank us too?

Spoiler: it’s not quite that simple.

Here’s what we’ve learned since making the move from NSW to the Huon Valley – and what surprised us most about the real cost of living in Tassie.

Housing: Cheaper, but…

Yes, property prices in Tasmania are lower than in most mainland cities – but don’t be fooled into thinking it’s a budget paradise.

Lower average incomes mean affordability is still a challenge for many locals, and the rental market is tight. We spent our first few months here in a caravan with a newborn, which wasn’t quite the idyllic fresh start we’d imagined.

If you’re buying, expect unique challenges: mould, dodgy builds, sight-unseen sales, and a so-called “mainlander’s tax” (you’ll see what we mean when you get here). The market doesn’t work quite like Sydney or Melbourne – and that’s not always a bad thing.

Groceries & Goods: Hello, Island Tax

Groceries cost a little more. Freight and fewer supermarket options (no Aldi, sorry) mean higher prices on some basics. The same goes for furniture and large goods – if you’re planning a big move, weigh up what’s worth bringing with you.

Transport: Bring Your Car

Public transport here is… let’s say limited. You’ll almost certainly need a car – and the good news is that Tasmania has the lowest on-road costs in the country.

We go into all the detail in our guide, but here’s a tip: windscreen insurance is worth it.

Utilities & Energy: The Hidden Budget Buster

Heating your home in winter is a real cost consideration. Wood, gas and electricity prices can add up – especially if you’re in a poorly insulated rental (ask us how we know).

Childcare & Education: A Mixed Bag

Public school is free (and we recommend it), but childcare and early learning can be expensive and hard to come by in some regions. Definitely something to research ahead of time if you’ve got young kids.

The Bottom Line?

We’ve found that life in Tasmania can be more affordable – but it depends on how you live, where you settle, and what your expectations are.

There are trade-offs, surprises, and local quirks to understand – and it’s not all roses and rustic charm. But with the right preparation, it can be a financially sustainable and deeply rewarding move.

Want the full breakdown?
Our guidebook, Thinking About Moving to Tasmania?, shares 61 honest, practical tips – from housing and health to culture and climate.
Just $6.99 – Download your copy here