Housing Costs Remain Australians’ Top Financial Worry Heading into 2026
As 2026 approaches, housing costs continue to dominate the financial concerns of Australians, according to Canstar’s latest Consumer Pulse Report. The cost of mortgages and rent has been identified by 22% of respondents as their biggest financial stress point for the coming year, more than doubling worries from five years ago.
Housing Costs Take Center Stage
The report highlights that both mortgage repayments and rental prices are placing enormous pressure on households nationwide. Millennials are especially feeling the strain. For example, monthly repayments on a typical $600,000, 30-year home loan taken out before the Reserve Bank’s interest rate hikes now average around $3,734—a 50% increase compared to figures observed in May 2022. Renters, particularly Generation Z, are also struggling with affordability. Half of all renters reported an average increase of $62 per week in rent, up from $53 the previous year, underscoring the ongoing challenge of securing affordable accommodation.
Other Financial Concerns in 2026
While housing costs top the list, other essential expenses continue to weigh heavily on Australians’ minds:
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Grocery Prices: Ranked as the second-largest financial worry, grocery bills were a concern for 18% of respondents. Although this is slightly down from 20% last year, households still face rising costs at the checkout, with the average weekly grocery bill now at $202. Nearly all consumers experiencing an increase attribute it primarily to higher prices rather than buying more.
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Electricity and Gas Bills: For the ninth consecutive year, energy costs remain among the top three concerns. Anxiety over electricity and gas bills rose from 7% to 10% over the past year, coinciding with reductions in federal energy bill relief. Average quarterly electricity bills climbed by $68 to $439 in 2025, while gas bills rose $17 to $242. – Insurance Premiums: Rising insurance costs, including home and contents insurance, continue to trouble many Australians. In 2025, 39% of property owners experienced an average increase of $480 in their home and contents insurance premiums, yet only 11% managed to switch providers and secure savings. Among renters, 42% faced an average contents insurance cost rise of $89. – House Price Movements: Concerns about house prices complete the top five financial worries. A majority, 56%, expect property values to steadily increase over the next two years, while 17% fear prices could significantly surge. Confidence in house prices easing or crashing is low, with only 5% anticipating a market cooling, indicating ongoing apprehension about housing affordability.
Cost-of-Living Pressures Persist
As Australians move into 2026, cost-of-living pressures remain at the forefront, especially for younger households. While some worries, like grocery prices, have slightly eased, most essential expenses continue to fuel financial anxiety. The report revealed that over one-third of Australians expect to face challenges with at least one bill or loan repayment in the coming year, highlighting a financial landscape where many focus on merely staying afloat rather than progressing financially.
This data paints a clear picture of the economic challenges confronting Australian households, emphasizing the critical need for policies and measures to address housing affordability and ease the overall financial burden on families.
This article was reviewed and fact-checked by Alasdair Duncan, Deputy Finance Editor at Canstar.
About the Author
Jessica Pridmore is Canstar’s Finance Editor with over 12 years of experience in the media industry, contributing to numerous respected publications across Australia and the UK including Grazia UK, WIRED, and Refinery29.