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The Canberra Times
The Canberra Times

More forgo parenthood as pressure of living costs, climate bear down

The spiralling cost of living and a lack of support for new mums are likely driving down birth rates in the ACT.

New data from the inquiry into raising children in the ACT shows women in the capital have the lowest fertility rates in Australia.

Compared to the national average of 1.63 births per woman, ACT women are having an average of 1.2 births. The inquiry found that cost of living, climate change and housing instability are key factors to ACT women's decision to turn away from having children.

The inquiry found that the affordability of housing was considered a "significant barrier to having children."

"Birth rates are dropping, but I know that there are so many people in my age group who desperately want kids but can't afford to do so," said one submission to the inquiry.

Other factors impacting ACT women include "the cost and accessibility of housing, childcare and healthcare - environmental concerns, and the availability of family and community support," chairwoman of the standing committee on health and community wellbeing, Jo Clay, said.

New Canberra mum Sahejin Siddiqui has faced a number of challenges since giving birth in the capital.

"They say it takes a village to raise a child, and unfortunately that village is not here in Canberra," Ms Siddiqui, who moved to Canberra in 2021 said.

"The social and support factor is shockingly lacking."

Sahejin Siddiqui, with 18-month-old daughter Alizeh Elias, says it's expensive to raise a child in Canberra. Picture by Karleen Minney

"The cost-of-living pressure has gone up at an alarming rate. It's nearly impossible to have a decent life on a single wage."

A recent study by the ACT Council of Social Service found that 94 per cent of Canberrans renting privately experienced "housing stress" - a category quantified by spending more than 30 per cent of your income on rent.

Social researcher and demographer at ANU Dr Liz Allen said the need for a dual-income to service a home in the ACT is turning people away from having children.

"[If] one of those in the household gives up a wage or lowers it, often going part-time [after having a child], it becomes very tricky," Dr Allen said.

There is some indication that the costs of Canberra houses are coming down, with a recent study by CoreLogic indicating that costs are 8.9 per cent lower than the housing peak of June 2022. Rent has also shown signs of easing in the ACT with rent down 3 per cent in the last quarter.

The relatively high cost of living alongside recent inflation in the ACT is pushing lower- and median-income households into economic hardship.

Canberrans have experienced sharp cost-rises in essential family items including: fuel (37 per cent), electricity (25 per cent), medical and hospital services (19 per cent), and food (18 per cent) over the past five years, the ACTCOSS 2023 Cost of Living report found.

"The cost of childcare and lack of affordable housing is a huge factor for my family deciding if we'll stay in Canberra to have children or move elsewhere," one submission to the inquiry said.

For younger Canberrans, fears of climate change and the lack of government action to prevent change are impacting the decision of whether to have children. A 2021 study published in The Lancet found that 43.2 per cent of young people in Australia were hesitant to have children due to climate change.

"While I would like to have children, I am uncertain if it is a responsible decision for the planet, for their potential future quality of life, and the high living costs associated with high population and world instability," said Lucy Wenger in her submission.

The inquiry found that a baby bonus or one-off financial incentive to have a child was unlikely to ameliorate the ACT's fertility rate. A multi-faceted approach including free childcare, subsidised medical expenses, better public transport and more funding towards public housing were deemed more effective.

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