Hobart's economy has exceeded $10 billion for the first time, according to the City of Hobart's 2026 State of the City Report, marking a significant milestone in the City's growth and highlighting its role as Tasmania's economic and cultural heart.
The report shows Hobart now generates almost a quarter of Tasmania's economic output, driven by productivity growth, knowledge-intensive work and higher-value industries.
Hobart Lord Mayor Anna Reynolds said the milestone reflected the city's growing economic sophistication and resilience.
The report also highlights key challenges facing the city, including housing affordability, an ageing population, workforce shortages and slower economic growth.
Overseas migration remains the primary source of population growth, while rental vacancy rates remain extremely low at around 0.5 per cent.
Despite these challenges, Hobart's labour market remains strong, with more than 67,000 jobs located in the city and unemployment sitting at just 2.9 per cent.
The report points to growing momentum in key industries including Antarctic and Southern Ocean science, education, renewable energy, and the creative and digital sectors.
Business confidence also remains strong, with non-residential building approvals reaching $270 million in 2025-26, up $110 million on the previous year.
The progress outlined in the State of the City Report falls in line with the Capital City Strategic Plan 2023 and supports one of the City's main pillars, City Economies.
The City of Hobart's 2026 State of the City Report is available at the City of Hobart website.
Quotes to be attributed to Hobart Lord Mayor Anna Reynolds:
"Reaching a $10 billion economy is a significant milestone for Hobart and highlights the strength of our businesses, workforce and community.
"The report shows Hobart has strong foundations for future growth, but we cannot be complacent.
"The decisions we make today on housing, infrastructure, investment and jobs will shape the Hobart of tomorrow.
"If we continue to invest, collaborate and plan for the future, the $10 billion economy we celebrate today will be just the beginning of Hobart's next chapter."
