Affordable city accolades mask true figures of the cost of living

ABC NEWS (Australia)

Canberra has become Australia’s most affordable city for renters with new data revealing the cost of renting in the act has stabilised over the past twelve months. But advocates say the figures mask the reality for households living on below average incomes with the gap between the highest and lowest earners bigger in the capital than anywhere else.

Transcript

00:00At first glance, it's good news for Canberra renters.

00:06With the Rental Affordability Index that's released today, Canberra looks like it's doing

00:10pretty well compared to the other Australian capital cities.

00:13With an average ACT household spending just under a quarter of its income on rent last year.

00:19Canberra, one of just two capital cities where rental affordability improved, up 4% from last year.

00:26Sydney is also up with Adelaide and Melbourne steady.

00:30Elsewhere though, affordability has dipped with Perth now the least affordable capital.

00:36But a closer look at the data shows high average incomes here in the capital are masking the reality.

00:43With most people with below average earnings struggling to pay rent.

00:48A single part-time worker, parent on benefits, will be likely to be paying about 65% of their income on rent.

00:55Whereas a single person on benefits may be paying as much as 100% of their income on rent.

01:01A hospitality worker in Canberra spends an average of 40% of their income on rent.

01:07While a couple on minimum wage spends about 31%.

01:11The situation is very dire where even average income households are often paying 30% or more of their income on rent.

01:19Which means that they are in a situation of housing stress.

01:22The gap between the higher and lower incomes in the ACT is bigger than in other states.

01:29But targeted measures like rental caps could be starting to make a difference.

01:34It might explain why Canberra is starting to show signs of bucking the national trend.

01:40Rents can still be increased but only by 110% of consumer price index.

01:45And that has just taken out the excessive rent rises in the market.

01:49But how long will it take for the tide to turn before key workers are priced out of the city they serve?

01:55at the same time.

02:02You

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