A man and woman hold protest signs at the ACT public sector workers’ rally at Legislative Plaza in Canberra. Photo: John Lomnicki.
More than half of Canberrans say their household expenses are rising faster than their income, while nearly two in five have experienced financial stress, according to new research exposing the growing cost-of-living pressures in the nation’s capital.
The University of Canberra’s latest Living Well in the ACT Region survey found 58.2 per cent of residents reported expenses outpacing their income in 2025, while 37.5 per cent experienced at least one financial stress event.
The financial strain is forcing households to make difficult choices, with residents cutting back on heating, switching to cheaper groceries and delaying medical appointments. More than one in 10 respondents (12.4 per cent) reported running out of food without having money to buy more.
The findings paint a contrasting picture of life in Canberra, where 91.3 per cent of residents consider their neighbourhood liveable, yet only 33.3 per cent believe living costs are affordable.
The survey, which involved 3223 participants, found financial pressures were particularly pronounced among people aged 30 to 49, parents, carers, renters, mortgage holders and those living with restrictive disabilities.
Lead researcher Professor Jacki Schirmer, from the University’s Health Research Institute, said overall wellbeing had improved slightly in 2025, particularly among younger mortgage holders and renters.
“This highlights that the two interest rate cuts, and lower inflation we saw in 2025 helped support wellbeing,” Professor Schirmer said.
“Unfortunately, interest rates rises in 2026 may be threatening these wellbeing gains.”
The proportion of Canberrans reporting low wellbeing declined from 31.2 per cent in 2024 to 27.4 per cent in 2025, although levels remained below those recorded in 2023.
The improvement was not shared equally, with wellbeing declining among people living with moderately or severely restrictive disabilities. Among those reporting financial stress, 70.9 per cent had reduced takeaway or restaurant meals, 66.6 per cent switched to cheaper supermarket products and 56.7 per cent cut back on heating or cooling.
Almost half (49.3 per cent) cancelled social activities, while 41.5 per cent delayed medical appointments and 24.4 per cent put off purchasing medication.
Food insecurity remained a significant concern, with 21.6 per cent worried about running out of food before their next income payment and 20.6 per cent unable to afford balanced meals.
Another 36.7 per cent reduced home maintenance or repairs, cut back on insurance or stopped at least one form of insurance altogether.
Hands Across Canberra CEO Genevieve Jacobs said the findings reflected the pressures community organisations were witnessing firsthand.
“It’s what we are hearing from the community sector every day: that there are many Canberrans who are struggling to meet basic living expenses, and a growing need for support for things like food, clothing, and help with energy bills,” she said.
Despite the financial challenges, the research identified improvements in social connections and access to healthcare.
The proportion of Canberrans spending time socialising in person with friends and family increased from 40.2 per cent in 2024 to 49.2 per cent in 2025.
Participation in community activities also rose from 61.7 per cent to 68 per cent, with the strongest growth among residents aged 65 and older.
However, loneliness remained widespread, with 42.1 per cent reporting feeling lonely sometimes or often.
More than one-third (35.8 per cent) experienced moderate or high psychological distress, with younger adults, renters, unemployed residents and people living with restrictive disabilities among those more likely to report poorer mental health.
Access to general practitioners improved, with the proportion finding it difficult to see a GP falling from 24.7 per cent in 2024 to 19.1 per cent in 2025.
Almost half of employed Canberrans (45.3 per cent) worked from home at least one day a week, although 55.5 per cent of all respondents felt they had too many demands on their time.
The survey also revealed declining satisfaction with Canberra’s transport infrastructure.
Satisfaction with walking paths dropped from 73.2 per cent in 2024 to 65 per cent in 2025, while satisfaction with light rail fell from 66.7 per cent to 58.7 per cent. Satisfaction with buses declined to 50.8 per cent.
Residents raised concerns about maintenance, connectivity, accessibility and safety.
Confidence in Canberra’s ability to respond to challenges also weakened, falling from 73.8 per cent in 2023 to 68 per cent in 2025, with lower confidence reported in Outer Belconnen, Weston Creek and Tuggeranong South.
There were some positive signs, however, with 47.1 per cent rating their health as very good or excellent, up from 41.2 per cent the previous year. The proportion who felt safe walking alone in their neighbourhood at night also increased, from 60.1 per cent to 65 per cent.
Yet concerns about the future remained, with 67.9 per cent believing children growing up today would be worse off than their parents.
Despite the challenges, 90 per cent of respondents said they would recommend the ACT region as a good place to live.
