Canberra is one of Australia’s most desirable but expensive cities to live in. Yes, it’s a place where leafy suburbs meet national institutions—and the price tag shows it.
High incomes and employment stability: As the federal capital, Canberra boasts Australia’s highest average disposable income thanks to strong public service and professional job markets.
Plenty of green space & relaxed pace: Scenic views of Lake Burley Griffin, tree-lined streets, and easy access to mountain walks give it a calmer lifestyle than bigger cities.
Low congestion and shorter commutes: Less traffic and more cycling or walking—Canberrans average 26 minutes walking daily to work.
Well‑funded schools and clean neighbourhoods: Top performing public schools, low crime, and high recycling rates (75% of household waste recycled) mean a high quality of life.
Reliable facilities and infrastructure: Canberra has stable electricity, clean drinking water, efficient waste management, and strong mobile and internet coverage across most suburbs.
If you can afford it, yes—but affordability is a real issue for many.
Housing costs dominate budgets: Over half of typical household income goes to rent or mortgage—well above the recommended 30% threshold and even higher than Sydney’s already steep levels.
Tight rental and property markets: Vacancy rates often stay under 2%—sometimes as low as 0.7%—making competition fierce and rent prices high.
High‑income environment drives inflation: With the highest median income in Australia, prices for everything from café coffee to utilities trend upward proportionally.
Essential services are high quality but costly: While power supply is reliable, electricity bills have risen, with average households paying significantly more than the national average. Water and internet are also high-performing, but premium-priced.
Transport and amenities: The light rail, extensive bus network, and cycle paths make getting around easy. Most suburbs are within 30 minutes of major shops, hospitals, and schools.
Explore common garden heritage at the National Arboretum or stroll around Lake Burley Griffin
Visit museums and galleries like the National Museum of Australia and Questacon
Discover local cafés and weekend farmers’ markets in Braddon or Kingston
Scenic drives to Namadgi National Park in winter or Snowy Mountains in summer
Catch annual events like Floriade in spring or Canberra Balloon Spectacular
I’m a small-business operator in the inner north, and I’ve found Canberra a welcoming place. We have bursts of city pace—busy cafés, gallery hires, festivals—and then stretches of quiet where kids ride bikes and neighbours chat across fences.
"Lazy Sundays at the markets," as one fellow parent puts it, mean grabbing fresh produce, walking along the lake, and pop‑up art stalls. There’s a shared rhythm here—enough economy buzz to feel connected, enough calm to breathe.
But over the years I’ve seen families juggle rent hikes or get stuck in suburbs hours from the CBD to afford a roof over their heads. So while many of us stay by choice, some stick around because they can’t risk moving back east or offshore.
Here’s the snapshot:
Housing affordability: As of late 2024, the median transfer price in Canberra was around A$980,000, second‑highest in Australia.
Above‑inflation rises in essentials: Over the last five years, education costs rose ~31%, housing ~22%, food ~21%—all outpacing the broader CPI.
Low rental vacancy → bidding wars: Vacancy often under 1% in peak periods, leaving renters outbid repeatedly on limited stock.
High‑income pressure: With higher household incomes, landowners and businesses can charge more—creating internally high-cost equilibrium.
Limited market competition: Fewer independent businesses mean less downward pressure on prices—be it petrol, cafes, real estate or utilities.
Facility costs: While Canberra’s electricity grid is one of the most stable, household power bills are among the nation’s highest. Waste and recycling services are effective but factor into council rates. High-speed internet is widely available but pricey.
Canberra’s mix of tree‑lined boulevards, national institutions, and weekend markets gives it a charm all its own. But if you’re wondering, why is it so expensive to live in Canberra?, the answer lies in a tight housing market, strong incomes, and limited supply driving up all the prices. Think of it as expensive living meeting efficient design—beautiful, but not cheap.
Is Canberra more expensive than Sydney or Melbourne?
Overall living costs are high but often slightly lower than Sydney. Housing remains comparably pricey—Canberra’s rent share over income (~53%) is similar to Sydney’s.
What can I do to lower my living costs in Canberra?
Consider suburbs at the outskirts or rent‑vesting strategies. Sharing housing or renting in areas with better vacancy rates helps too. Some locals also drive to nearby NSW towns to rent, though it adds commute time.
Why is petrol pricier in Canberra than other capitals?
Analysis shows Canberra’s market lacks retail competition and uses longer fuel‑price cycles, allowing consistently higher petrol margins than metros like Perth or Adelaide.
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