Housing Costs Remain Australians’ Top Financial Worry Heading into 2026, Canstar Reports
By Jessica Pridmore, Finance Editor | Edited by Alasdair Duncan, Deputy Finance Editor | 17 December 2025
As Australians prepare to enter 2026, housing costs continue to loom large as the dominant financial concern, according to Canstar’s latest Consumer Pulse Report. The ongoing challenges of managing mortgage repayments and rising rents have placed housing expenses at the forefront of household anxieties, marking the highest level of concern seen in recent years.
Housing Costs: The Leading Concern
Housing costs, encompassing both mortgages and rent, were cited by 22% of survey respondents as their primary financial worry—a figure that has more than doubled compared to five years ago. This surge underlines the intensified pressure many Australians feel to keep a roof over their heads amid rising living costs.
Millennials appear particularly vulnerable to these pressures. Homeowners with mortgages taken before the Reserve Bank’s recent tightening cycle are now facing monthly repayments averaging $3,734 on a $600,000, 30-year loan. This amount represents an increase of roughly 50% since May 2022, placing a significant strain on many household budgets.
Renters have not been spared from the affordability squeeze, with Generation Z renters especially concerned about the rising cost of rent. The average weekly rent increase reported among all renters is now $62, up from $53 the previous year.
Grocery Prices: Still a Major Challenge
Following housing costs, grocery prices remain the second-largest financial worry, cited by 18% of Australian households. Although this figure represents a slight decrease from 20% last year, grocery bills continue to stretch budgets. The average weekly grocery expense has climbed to $202. Notably, 93% of those experiencing increases attribute the rise to higher prices rather than purchasing more groceries.
Energy Bills: A Persistent Concern
Electricity and gas costs persist as one of the top three financial concerns for Australians, maintaining their high ranking for the ninth consecutive year. Concern on this front has grown from 7% to 10% over the last 12 months, coinciding with the reduction of federal energy bill relief initiatives.
Data from 2025 shows the average quarterly electricity bill increased by $68 to $439, while gas bills rose by $17 to $242, further intensifying the financial pressure felt by many households.
Insurance Premiums on the Rise
Rising insurance premiums remain firmly entrenched within Australians’ top five financial worries for the second year running. In 2025, 39% of property owners reported an average increase of $480 in their home and contents insurance premiums. Despite these hikes, only 11% of homeowners switched providers to secure lower rates.
Renters also felt the impact of insurance cost increases, with 42% reporting rises averaging $89 in contents insurance premiums.
House Price Movements: Uncertainty Persists
Concern about fluctuations in house prices completes the list of the top five financial worries for 2026. Over half of respondents (56%) expect house prices to continue increasing steadily over the next two years, while 17% anticipate a sharp spike. Only 5% believe prices will fall or stabilize, reflecting limited optimism about improvements in housing affordability in the near term.
Outlook for 2026: Cost-of-Living Pressures Dominate
As the new year approaches, Australians remain deeply concerned about essential living costs. While there has been some easing of worries in certain areas, day-to-day expenses—including housing, groceries, energy, and insurance—continue to consume much of household financial focus, particularly among younger generations.
Significantly, more than one in three Australians foresee difficulties in keeping up with at least one bill or loan repayment in 2026. This sobering data suggests that, for many, the immediate priority remains managing ongoing expenses amid broad economic pressures, rather than advancing financial goals.
This article was fact-checked and reviewed by Canstar Deputy Finance Editor Alasdair Duncan.
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