Housing Costs Remain Australians’ Top Financial Worry for 2026, Says Canstar
By Jessica Pridmore, Finance Editor | Edited by Alasdair Duncan, Deputy Finance Editor | 17 December 2025
As Australians prepare to enter 2026, housing costs have emerged once again as the nation’s most pressing financial concern. Canstar’s latest Consumer Pulse Report reveals that worries over mortgages and rent top the list of economic anxieties for the year ahead, impacting a significant portion of households across the country.
Housing Costs Dominate Financial Concerns
According to the report, 22% of respondents identified housing costs as their greatest financial stress factor, more than double the level recorded five years ago. Whether it is grappling with high mortgage repayments or surging rental prices, maintaining stable housing remains a major challenge for many Australians.
Millennials appear to be bearing the brunt of this pressure. For those with home loans established before the Reserve Bank’s recent interest rate tightening cycle, monthly repayments on an average $600,000, 30-year mortgage have escalated to approximately $3,734—a nearly 50% increase compared to May 2022 figures.
Renters are feeling the squeeze as well, with Generation Z renters especially impacted. Half of all renters reported experiencing average weekly rent hikes of $62, a notable rise from $53 the previous year, further exacerbating rental affordability concerns.
Other Key Financial Worries: Groceries, Energy, Insurance, and House Prices
Housing costs are not the only financial issue weighing on Australians. The Consumer Pulse Report highlights several other predominant concerns:
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Grocery Prices: Grocery bills remain the second-highest financial worry, cited by 18% of households. Although this is a slight decrease from 20% last year, Australians continue to face increased costs at the supermarket checkout, with the average weekly grocery bill now standing at $202. Notably, 93% of those experiencing higher grocery costs attribute this to price increases rather than purchasing more food.
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Electricity and Gas Bills: For the ninth consecutive year, energy expenses rank among the top three financial anxieties. Concern over electricity and gas bills has increased from 7% to 10% in the past year. This rise coincides with the scaling back of federal energy bill relief measures. In 2025, average quarterly electricity bills rose by $68 to $439, while gas bills increased by $17 to $242. – Insurance Premiums: Rising insurance costs continue to feature in Australians’ top five financial worries for a second year running. In 2025, 39% of property owners faced an average increase of $480 in home and contents insurance premiums, yet only 11% switched providers to find better rates. Among renters, 42% experienced higher contents insurance costs, with an average increase of $89. – House Price Movements: Concern about the trajectory of house prices completes the top five financial issues. More than half (56%) of respondents anticipate steady price growth over the next two years, while 17% fear prices may surge dramatically. Few expect prices to decline, with just 5% predicting any easing or crash, pointing to continued affordability challenges.
Cost-of-Living Pressures Persist into 2026
The Canstar report underscores that cost-of-living pressures remain a dominant force in Australians’ financial outlook heading into 2026. Despite slight easing in some areas, essential costs such as housing, groceries, energy, and insurance consistently drive anxiety—particularly for younger demographics striving to keep their finances stable.
More than one in three Australians expect to face difficulties managing at least one bill or loan repayment in the coming year. This trend indicates that many households are primarily focused on sustaining their current financial positions rather than progressing financially.
Jessica Pridmore is Canstar’s Finance Editor with over 12 years of experience covering finance and lifestyle topics across Australia and the UK. This article was fact-checked and updated in cooperation with Alasdair Duncan, Deputy Finance Editor.