Canberra is the least affordable capital city for low-income renters in the country, according to the 2021 Rental Affordability Index (RAI).

Based on government held rental bond data, the report shows the average ACT rental household in Canberra has an RAI score of 119 (Moderately Unaffordable) and for low-income renters the statistics are even worse.

ACTCOSS Acting CEO, Craig Wallace, said the report gives stark and specific insight into renters who are being “financially smashed” in the current market.

“A single person on Jobseeker would need to spend more than their whole income – 113 per cent of their actual income – to rent in Canberra, while pensioner couples are being asked to pay more than half of their income, and for single pensioners, two-thirds of their income on rent,” Mr Wallace said.

“People are being forced to eke out a weekly budget that chooses between paying the rent and maintaining ever rising food, electricity, heating, clothing, and petrol bills. Even working people are just scraping by and the index shows the ACT is the second least affordable capital city for single full-time working parents and couples with children.”

Mr Wallace said this shows there are no affordable rental housing options for these groups of renters in the ACT and called for urgent action from the ACT and Federal Governments.

“We need full delivery of the ACT Housing Strategy on the ground here with additional public and community controlled build-to-rent housing. This requires direct investment from the ACT Government and changes to planning to free up more land for affordability, and reduce costs and barriers for community housing providers,” he said.

“The Federal Government doesn’t get an exit pass. As we head towards a federal election, stressed Canberra renters need the next Government to urgently commit to funding a national social housing construction program, boost Commonwealth Rent Assistance and continue to support and extend affordable housing rental incentive programs to generate new supply.”

Executive Director of Better Renting, Joel Dignam, said the report shows how the rental situation is “really difficult” in Canberra.

“The first concern we have is the direct impact on the household budget. Once you’re spending over a certain amount of rent, you don’t have money left over for the basic needs like food on the table or fuel in the tank, and no one should have to make that trade off,” he said.

“The second concern is that people are so pressured by affordability they end up being forced to live somewhere that’s unsafe or unmaintained, and it then makes it possible for landlords who these cheaper properties to not maintain standards.”

Mr Dignam said while directly reducing rental costs is difficult for the ACT Government, the work they are doing to look into rental standards can help.

“There needs to be more measures to limit rent increases and renters being caught out by them. This needs to be a tighter system so landlords can stop profiteering off the system.”

He said the ACT Government’s discussions on ending ‘no fault’ evictions will also help the Territory’s rental crisis.

“The ACT Government is moving to end ‘no fault’ evictions which is relevant to rental affordability because we hear stories of landlords using the ‘no grounds’ termination to increase rent. It’s too much to call it a loophole, it’s a gaping cavern, and ending this will make it easier for tenants to stay in affordable homes,” he said.

ACT Rental Affordability Index 2021

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