Low-Income Earners Priced Out of Affordable ACT

Canberra's most vulnerable low income earners have been priced out of the city despite the ACT becoming the most affordable capital city, according to the tenth annual National Shelter-SGS Economics and Planning Rental Affordability Index.

The study, released today, compares rents to average incomes and revealed that people on low incomes and income support are facing one of the most unaffordable rental markets in the country.

The ACT is one of two regions where affordability improved in 2024 with rental affordability deemed Acceptable for the average household on a yearly gross income of $132,383. Canberra has become the most affordable capital city driven by a rise in average incomes. But this leaves every ACT suburb Unaffordable to Severely Unaffordable for the student share house. The entire territory is also Severely to Extremely Unaffordable for both single and coupled pensioners.

It is even worse for people on JobSeeker, who are facing Critically Unaffordable rents which take up 101 per cent of their income to afford rent, as well as a single parent on benefits who works part time and would need to pay 63 per cent of income on rent.

The ACT's rental affordability was one of just two regions where rents became more affordable. Affordability rose by 3 points in the year to 2024. It has become the country's most affordable capital city with a RAI of 128, driven by a sharp decline of affordability in other areas.

Spatial patterns of affordability have not changed much over the past year, with central Canberra shifting from Acceptable to Affordable, a result of a higher density housing push.

Acting CEO ACT Shelter Deb Pippen said: "The figures relating to average incomes hides the continuing crisis for so many in our community. While affordability has risen, the ACT's low income earners have been pushed to the brink of homelessness."

"Those on income support have been priced out of the city and are being pushed into poverty. There is an urgent need for more investment to ensure our people have access to safe and affordable housing."

SGS Economics & Planning Principal, Ellen Witte, said: "Since the introduction of rent increase limits in 2019, rental affordability has improved in the ACT. The evidence suggests preventing excessive rent increases is really helping rental affordability for Canberrans. With rent rises also being a driver of current inflation, a nationwide introduction of this policy measure could have the dual benefit of improving rental affordability and lowering inflation for everyone."

"But the problem facing low income households needs to be attacked from multiple angles. We need to expand social and affordable housing and strengthen renters' rights."

* Table comparing each household in the ACT and their rent as a share of income, as well as RAI score and affordability.