Canberra rentals remain unaffordable for many low-income residents despite reports suggesting otherwise.
The finding was made by the 11th annual National Shelter-SGS Economics and Planning Rental Affordability Index.
The study, which compares rents to average incomes, found a 4% improvement in affordability in 12 months with a median weekly rent of $600 taking up 23% of household income.
It says this improvement is driven largely by Canberra’s comparatively high incomes which obscures the reality for those on low wages and benefits.
With relatively high average incomes and stable rents, Canberra has become Australia’s most affordable city.
However, as so often the case, an average does not convey the continued crisis for the many households surviving on lower incomes.
When viewed through a distributional lens, the ACT remains one of the least affordable rental markets in the country for people on low incomes.
CANBERRA’S RENTAL REALITY MASK
The index found people receiving JobSeeker and pensioners face ‘severely’ to ‘critically’ unaffordable rents in the ACT.
A hospitality worker would need to spend 40% of their income on rent, while a minimum wage couple faces a rent burden of 31% of combined income, placing both households in rental stress.
“High median incomes in Canberra mask the stark reality for low-income renters,” says ACT Shelter CEO Corinne Dobson.
“While the Rental Affordability Index shows an encouraging improvement at the headline level, this is largely driven by high and increasing average incomes, and tells us very little about the experience of those most vulnerable to housing stress.
“For many in our community, especially key workers, students and people on income support, rents remain completely out of reach.
“Without substantial and sustained investment in social housing, together with stronger renters’ rights, affordability will continue to deteriorate for those most at risk.”
SGS Economics & Planning Principal Ellen Witte says: “Over the past three years, rental rates have improved in Canberra, supported by increased housing supply and policy measures such as the CPI-linked rent increase cap.
“Meanwhile, rising household incomes have further improved overall affordability,” she says.
“However, high median incomes in the ACT mask the challenges faced by low-income and vulnerable households, such as students and minimum-wage couples, who are unable to find ‘acceptable’ rentals.”
OTHER CITIES
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