Many renters have put saving for a home deposit on the backburner as they struggle with the cost of living, according to a new national report.
Canberra renters are also being affected, even though the ACT has some of the strictest rental laws in the country.
Better Renting's national survey on rental costs found 81 per cent of respondents had cut down on the amount they were saving in the year to June 2024.
Better Renting campaigner Sabrina Clarke said an increasing number of Canberrans on annual incomes of more than $90,000 were struggling to save for a property of their own.
"There is a despair that comes with that. Renters feel very powerless," she said.
The ACT has stronger rental laws than any other jurisdiction in Australia. Under territory law, landlords can only increase a property by 110 per cent of the percentage increase in the consumer price index for rents.
This works out at a median of 4 per cent annually for renters during the reference period, compared with a national median of 11 per cent, according to Better Renting's report.
But Ms Clarke said despite smaller rent increases in the ACT than in other places, the baseline cost for rent is still very high.
"Renters have been experiencing really high costs in the territory for a long time, which have significantly affected their ability to save for a deposit," Ms Clarke said.
The cost of living in the ACT has risen by more than 20 per cent across the past five years, and housing is one of the biggest factors.
James and his partner, who did not wish for a last name to be included, have rented in Canberra for 12 years with their now-teenage children.
They did not plan to rent for more than a couple of years but have not been able to save enough for a house large enough for their family.
James works in information technology and his partner works a senior job in the education sector.
He said despite being on relatively high incomes, extra costs associated with renting meant discretionary spending and saving was cut by about 10 per cent last financial year.
Ms Clarke said renters across the country generally have to pay more on bills and the costs associated with frequent moving than home-owners, meaning they are disproportionally affected by cost-of-living increases.
Nationally, 79 per cent of Better Renting survey respondents had cut down on discretionary expenses, and 70 per cent were spending less on food and groceries.
For James, this meant choosing between feeding his children nutritious meals or saving for a property.
"Things like fresh fruit, veggies and meat are very expensive," James said. "It means you can either put good quality food on the table or skip that and put money away.
"I have two kids who are very active, so I would prefer they are looked after in that regard. If I have to sacrifice putting money away, then I am going to do that every day of the week."
Minimum insulation standards were enacted in the ACT last year, but James said he wants these to be more stringent and for renters to be able to negotiate with landlords about cost-saving measures.
"Rental properties tend to have little in place for water saving, so the cost of water goes up.
"Insulation is sometimes not great, so you pay a lot [in heating]," he said.
The mental load of renting
James said the mental load of renting was just as taxing as the monetary cost, especially when living with children.
"Having the end of a lease hanging over your head is a real mental burden," he said. "You try to pack things up just in case you need to move."
Ms Clarke said many people in the ACT were on month-to-month rental agreements, which made it challenging to pack and move if given 30 days' notice.
The cost of moving houses - including break-lease fees, potentially paying double rent for a time, removal services and time off work to relocate - also affected renters.
James and his partner had at times felt on edge about preserving the conditions of a rental property, especially when their children were young.
Ms Clarke said many survey respondents felt a divide between themselves and their parents or a sense of failure at not having achieved ownership like the generation before them.
Is Canberra a success story?
Though renting in Canberra can be tough, the territory scored better than any other jurisdiction in almost all areas of Better Renting's report.
Ms Clarke said this showed that changes - including minimum standards, bans on no-grounds evictions and rent caps - worked to improve quality of life.
"Renters should be able to live with dignity without sacrificing medications, grocery costs and meaningful relationships because of housing costs," she said.
