The Rental Affordability Index (RAI) created by the National Shelter, Community Sector Banking and SGS Economics and Planning has identified what most already knew - Highlanders are under rental pressure. Some Bowral residents are spending around 50 per cent of their gross household income on rent, putting them in the "severely unaffordable" rent category in many cases.

That is an alarming situation considering food, water and shelter are three basic needs that should be available and affordable to everyone.

Sadly this is not the case. The cost of living is pushing people closer to the brink of financial strain. While the Highlands appears to be a community that offers comfortable living, the RAI tells a different story.

So too does feedback from one of the community's valued services that reaches out to homeless people and those under financial strain - Highland Grace, which runs the Soul Warmers Cafe.

The community outreach program is preparing for its Christmas luncheon and demand is so high it will serve a second Christmas lunch to meet the demand of about 200 people. They have also introduced a giving tree program this year to bring joy to many of those who would otherwise have a not-so merry Christmas.

That is 200 local people under financial pressure or homeless. And considering the recent RAI figures this is not surprising.

So we've identified there is a problem with people living on the financial brink, a problem enhanced by rental pressure, but how do we solve that problem?

It is not surprising that rental prices are high. That goes hand-in-hand with the soaring cost of buying a property. Those who buy properties to rent need to recoup their costs.

In a market where house prices continue to rise how can we off-set the cost of living? We would love to hear your thoughts. Please send letters to the editor at jackie.meyers@fairfaxmedia. com.au