While Canberra has earned the surprising title of Australia's most affordable city for renters, this statistical achievement hides a starkly different reality for low-income residents struggling with severe rental stress.
The Two Faces of Canberra's Rental Market
According to the 2025 Rental Affordability Index released by National Shelter and SGS Economics and Planning, Canberra's median weekly rent sits at $600, consuming approximately 23 per cent of an average household's income. This calculation positions the nation's capital as technically more affordable than other Australian cities.
However, SGS senior associate Kishan Ratnam explains this surface-level affordability is deceptive. "On the surface, for the average rental household, it looks quite good. Canberra now shows up as Australia's most affordable capital city," Mr Ratnam said. "The flip side of that is that for lower-income households, it's particularly bad because they're facing those higher rents without the benefit of higher incomes."
Severe Stress for Vulnerable Renters
The data reveals alarming figures for those on limited incomes. A single pensioner in the ACT could be spending up to 63 per cent of their income on rent, while individuals relying on JobSeeker payments might see their entire support package consumed by housing costs alone.
Giorgia Dalla Libera Marchiori, a 35-year-old international PhD student at ANU, experiences this reality daily. Despite receiving a university stipend, she finds herself sharing housing in less-than-ideal conditions. "If I would have had a choice, I would have probably liked to live by myself. It's unfortunately not possible because the prices are just too high," she said.
"You find also living situations that are not optimal in terms of old houses, with very small rooms that still cost like $300 a week."
Economic Impact and Wider Consequences
The rental crisis extends beyond individual hardship to threaten Canberra's broader economy. Robert Pradolin, founder of Housing All Australians, warns that essential workers are being priced out of the communities they serve.
"Canberra needs key workers to keep the city running but they're being priced out of the communities they serve," Mr Pradolin emphasized.
The report identifies several groups experiencing significant rental stress:
- Hospitality workers spending approximately 40 per cent of income on one-bedroom apartments
- Students and those on government benefits facing severe unaffordability
- Working households experiencing financial pressure despite employment
Mr Ratnam noted that national benefit payments like JobSeeker fail to account for regional rent variations, exacerbating the problem in high-cost areas like Canberra. Meanwhile, the ACT's relative stability compared to other east coast capitals - attributed to rent caps and housing oversupply - offers little relief to those at the bottom of the income ladder.
The 2025 data shows a four per cent improvement in overall rental affordability across the ACT, but this masks the deepening crisis for the most vulnerable residents, creating a tale of two cities within the nation's capital.
