New research highlights affordability crisis for frontline staff in the ACT and surrounds
Teachers, nurses, police officers and other frontline employees are increasingly unable to purchase or rent homes in many suburbs across the ACT and Capital Region, according to recent findings from the Property Council of Australia.
The study, led by the Property Council’s ACT and Capital Region executive director Ashlee Berry (pictured top), examined housing affordability for six typical essential worker households in 12 local suburbs. The analysis included both single-income earners, such as childcare workers and police officers, and dual-income couples, such as ambulance officers and nurses.
“The research confirms what we might have expected – detached houses are now unaffordable for every type of essential worker household modelled – including dual-income households with above-average earnings,” Berry said.
“In many cases, renting is also beyond reach, leaving workers with little choice but to face housing stress, move further away from their jobs, or leave the region altogether.”
The report found that since 2007, average house prices have increased by more than 115%, while wages have grown by only 84%. Median house prices in the region now exceed $1 million, and the cost of units is approaching $600,000.
The research used established affordability measures, defining housing as unaffordable if it costs more than 30% of income, and “seriously unaffordable” at four times income.
“Our essential workers are being priced out of the market,” Berry said. “Even a dual-income household of an ambulance officer and nurse, earning nearly $180,000 a year, can’t afford a detached home in Canberra.
“For single-income workers like childcare staff, the situation is dire. Renting a modest two-bedroom unit would still consume more than 40 per cent of their income – well above the 30 per cent of income affordability benchmark. These are the people who keep our city safe, healthy and functioning. They deserve the chance to live near their work, not be forced into rental stress or long commutes.”
“We need urgent action – more land supply, faster approvals, fairer taxes and the Missing Middle reforms – to boost housing supply and deliver homes that essential workers can actually afford.”
The Property Council is using the report to support its ongoing push for reforms to increase housing supply. Recommendations include changes to planning processes, a review of the land release pipeline, incentives for essential worker housing, and a pause on new taxes and charges during the National Housing Accord period.
“If the people who keep our city running can’t afford to live here, Canberra’s liveability and future are in real danger,” Berry said.
The Property Council also notes that taxes, charges and compliance costs account for about a third of the price of new homes in Canberra, and warns that new developer licensing laws could further increase costs if they add complexity without improving consumer protection.
“Every extra dollar of red tape is a dollar added to the price of a new home,” Berry said. “Without bold reforms, costs will keep climbing and essential workers will be forced further away or out of Canberra altogether.”
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