Housing Costs Remain Australians’ Top Financial Worry as 2026 Nears, According to Canstar Report
As Australians prepare to enter 2026, concerns over housing costs continue to dominate the nation’s financial anxieties, according to the latest Consumer Pulse Report from Canstar. The survey reveals that 22% of respondents identify mortgages and rent as their primary financial worry—more than double the rate reported five years ago—highlighting the ongoing pressure of housing affordability across the country.
Housing Costs Lead Financial Concerns
The cost of housing, including mortgage repayments and rental expenses, remains the foremost stress factor for Australian households. Millennials, in particular, are feeling significant strain, with monthly repayments on a $600,000, 30-year home loan taken before the Reserve Bank’s tightening cycle now averaging approximately $3,734. This figure represents an increase of nearly 50% compared to May 2022. Renters face similar pressure, especially younger Australians from Generation Z. Half of all renters have witnessed average weekly rent hikes of $62, an increase from $53 the previous year, compounding the challenge of securing affordable housing.
Grocery Prices and Energy Costs Also Top Concerns
Following housing, grocery prices emerge as the second biggest financial issue, cited by 18% of respondents, though this reflects a slight decrease from 20% last year. Despite this dip, many households report higher grocery bills, with the average weekly spend now at $202. Among those experiencing increased costs, 93% attribute it to rising prices rather than purchasing more goods.
Energy costs remain a critical concern, ranking among the top three issues for the ninth consecutive year. Anxiety around electricity and gas bills has increased from 7% to 10% over the past year, partly due to the federal government scaling back energy bill relief measures. Average quarterly electricity bills climbed by $68 to $439 in 2025, while gas bills rose by $17 to $242, further tightening household budgets.
Rising Insurance Premiums and House Price Movements
Insurance premiums also contribute to financial worries, placing within the top five concerns for the second year running. In 2025, 39% of property owners saw home and contents insurance premiums increase on average by $480. However, only 11% of these owners switched providers to access lower rates. Renters have not been immune, with 42% experiencing rises in contents insurance costs averaging $89. Additionally, apprehension regarding house price trends rounds out the top five worries for 2026. The majority of respondents (56%) expect home prices to continue rising steadily over the next two years, while 17% fear price surges. Only a small fraction (5%) anticipate a decline or crash in prices, underscoring limited optimism that housing affordability issues will ease in the near future.
Australians Face Ongoing Cost-of-Living Pressures
The findings paint a picture of Australians entering 2026 acutely aware of ongoing cost-of-living challenges. While some financial stresses have eased slightly, the most essential expenses, particularly housing, groceries, and energy, continue to weigh heavily on the minds of many, especially younger demographics.
With over one in three Australians expecting difficulties managing at least one bill or loan repayment in the coming year, the data suggests that numerous households remain focused on financial survival rather than growth. This highlights the critical need for ongoing support and policy measures to address affordability issues in the housing and broader living cost spheres.
This analysis is based on Canstar’s Consumer Pulse Report, authored by Finance Editor Jessica Pridmore and verified by Deputy Finance Editor Alasdair Duncan. Canstar is a leading Australian financial services research and comparison group dedicated to providing consumers with up-to-date insights into costs and financial trends.