Housing Costs Remain Australians’ Top Financial Worry Heading into 2026
As Australians approach 2026, concerns about housing costs are once again dominating financial anxieties across the nation. According to Canstar’s latest Consumer Pulse Report, housing expenses—encompassing both mortgages and rent—topped the list of financial worries, cited by 22% of respondents. This marks more than double the concern expressed five years ago, highlighting growing stress over the cost of maintaining a home.
Housing Costs: Mortgages and Rent Weigh Heavily
The ongoing challenge of meeting hefty mortgage repayments and surging rental prices continues to heavily impact Australian households. Millennials are particularly feeling the financial strain. For example, monthly repayments on a $600,000, 30-year home loan taken out before the Reserve Bank’s recent interest rate tightening are now approximately $3,734—a figure that is around 50% higher than it was in May 2022. For renters, the situation is similarly tough, with Generation Z renters experiencing the steepest increases. Around half of renters reported weekly rent hikes averaging $62, up from $53 the previous year.
Groceries: The Second Biggest Concern
Following housing, grocery prices remain Australians’ second-most pressing financial worry, mentioned by 18% of households. Though this is a slight reduction from 20% last year, the cost of groceries continues to rise. The average weekly grocery bill is now $202. Notably, 93% of those noticing higher grocery expenses attribute these increases primarily to price hikes rather than buying more items.
Energy Bills on the Rise
Electricity and gas bills continue to rank among the top three financial concerns for the ninth consecutive year. Concern in this category has risen from 7% to 10% over the past 12 months, coinciding with the gradual withdrawal of federal energy bill relief measures. In 2025, the average quarterly electricity bill increased by $68 to $439, while gas bills climbed by $17 to an average of $242 per quarter.
Rising Insurance Premiums Add Pressure
Insurance premiums are also a significant worry, remaining firmly in the top five financial concerns for the second year in a row. In 2025, nearly 40% of property owners experienced an average increase of $480 in home and contents insurance premiums. Despite rising costs, only 11% of property owners switched providers to obtain lower premiums. Among renters, 42% faced increases in contents insurance costs, averaging $89 more per year.
House Price Movements: Uncertainty Persists
House price movements round out the top five financial fears for Australians in 2026. A majority of respondents (56%) expect house prices to grow steadily over the next two years, while 17% fear prices could skyrocket. Only 5% anticipate any easing or a crash in house prices, indicating little confidence that affordability pressures will subside soon.
Cost-of-Living Pressures Persist into 2026
Heading into the new year, many Australians continue to grapple with cost-of-living challenges. Although financial concerns have eased slightly in some areas, essential expenses—particularly housing and groceries—remain dominant stressors, especially for younger generations. With over one in three Australians expecting to struggle with at least one bill or loan repayment in 2026, many households appear focused on simply keeping afloat rather than building financial security.
This article was written by Jessica Pridmore, Canstar’s Finance Editor, and reviewed by Deputy Finance Editor Alasdair Duncan as part of Canstar’s rigorous fact-checking process. Jessica brings over 12 years of media industry experience, contributing to a range of fintech, travel, and lifestyle publications in Australia and the UK.