Housing Costs Remain Australians’ Top Financial Worry for 2026, Says Canstar
As Australia approaches 2026, concerns about housing costs continue to dominate the financial worries of many Australians, according to Canstar’s latest Consumer Pulse Report. The report reveals that mortgages and rent are the biggest sources of financial stress, with 22% of respondents citing housing costs as their primary worry—more than double the level recorded five years ago.
Housing Costs and Mortgage Pressures
The cost of maintaining a home, whether through mortgage repayments or rent, remains a heavy burden for Australian households. Millennials are especially feeling the impact. For those who took out a $600,000, 30-year mortgage before the Reserve Bank’s tightening cycle, monthly repayments now average around $3,734—a roughly 50% increase since May 2022. Renters are also under strain, particularly among Gen Z, with half reporting an average weekly rent increase of $62, up from $53 last year.
Grocery Prices Close Behind
Grocery expenses rank as Australians’ second-largest financial concern, with 18% of respondents highlighting prices at the checkout as a key worry. Although this figure has slightly declined from 20% last year, households are still paying more, with the average weekly grocery bill reaching $202. Among those affected by higher costs, 93% attribute the increased spending to higher prices rather than purchasing more items.
Rising Energy Bills Add to Financial Stress
Electricity and gas bills continue to rank within the top three financial concerns for the ninth consecutive year. Concern over energy costs has risen from 7% to 10% in the past year, coinciding with the reduction of federal energy bill relief measures. In 2025, the average quarterly electricity bill rose by $68 to $439, while gas bills increased by $17 to $242. Insurance Premiums Also Climb
Insurance remains a significant worry for many Australians, placing fifth in the list of top financial concerns. In 2025, 39% of property owners experienced an average increase of $480 in home and contents insurance premiums, yet only 11% switched providers to find a lower rate. Additionally, 42% of renters saw an average increase of $89 in contents insurance costs.
Housing Market Trends Fuel Uncertainty
Concerns about house price movements round out the top five financial worries for 2026. A majority of respondents (56%) expect house prices to continue rising steadily over the next two years, while 17% anticipate a significant surge. Only 5% predict prices will fall or crash, indicating limited optimism that housing affordability pressures will ease in the near future.
Outlook for 2026: Managing Cost-of-Living Pressures
The data suggests Australians are entering 2026 with cost-of-living pressures at the forefront of their minds. While worries have eased somewhat in certain areas, essential expenses like housing, groceries, and energy continue to weigh heavily, especially among younger households. More than one in three Australians expect to struggle with at least one bill or loan repayment next year, reflecting a widespread focus on maintaining financial stability rather than building wealth.
The Canstar Consumer Pulse Report underscores the ongoing challenges faced by many Australians in navigating rising costs and housing affordability as the nation looks ahead to 2026. About Canstar’s Finance Editor
Jessica Pridmore, Canstar’s Finance Editor, authored this report. With over 12 years of experience in media across Australia and the UK, Jessica has contributed to a variety of well-known publications including Grazia UK, WIRED, Suncorp, and Tourism & Events Queensland. The article was reviewed and fact-checked by Deputy Finance Editor Alasdair Duncan prior to publication.