Housing Costs Remain Australians’ Top Financial Worry Heading into 2026
By Jessica Pridmore, Finance Editor
Edited by Alasdair Duncan, Deputy Finance Editor
Published: 17 December 2025
As Australians look toward 2026, concerns about housing costs continue to dominate their financial landscape, according to the latest Consumer Pulse Report from Canstar. The report highlights housing-related expenses, including mortgages and rent, as the leading financial worry for the nation, surpassing other key cost-of-living pressures.
Housing Costs Lead Financial Anxiety
A significant 22% of Australians surveyed in Canstar’s report identified housing costs as their foremost financial concern for the upcoming year. This marks a notable increase — more than double the level of worry expressed five years ago. Factors such as steep mortgage repayments and rapidly rising rents have pushed housing expenses to the top of household stress points.
Millennials, in particular, are bearing the brunt of these pressures. For example, monthly repayments on a $600,000 home loan over 30 years, taken out prior to the Reserve Bank’s cycle of interest rate hikes, have surged to approximately $3,734 — around 50% higher than levels seen in May 2022. Renters are similarly affected, with Generation Z renters reporting average weekly rent hikes of $62, up from $53 the previous year, signalling persistent rental affordability challenges.
Other Major Financial Concerns
While housing remains the top worry, several other essential expenses continue to weigh heavily on Australians’ minds:
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Grocery Prices: Tightening households have named groceries as their second-largest financial concern. Although this figure has slightly dipped from 20% last year to 18% in 2025, grocery bills remain steep, with an average weekly spend of $202. Of those experiencing higher costs, nearly 93% attribute the increase to rising prices rather than buying more items.
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Electricity and Gas Bills: For the ninth consecutive year, rising utility costs remain within the top three worries. Concern jumped from 7% to 10% over 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, and gas bills increased by $17, reaching $242. – Insurance Premiums: Increases in insurance costs continue to cause financial strain, maintaining a place in Australians’ top five worries for the second year running. In 2025, 39% of property owners faced an average home and contents insurance premium hike of $480. However, only 11% switched to a lower-cost provider. Renters also felt the pinch, with 42% seeing contents insurance premiums rise by an average of $89. – House Price Movements: Worries over house price volatility round out the top five financial concerns for 2026. More than half of respondents (56%) anticipate prices will continue growing steadily over the next two years, while 17% expect a sharp increase. Only a small minority — 5% — believe prices will decline or see a crash, indicating a lack of confidence that housing affordability will improve soon.
Cost-of-Living Pressures Persist
The Canstar report underscores that Australians are moving into 2026 with cost-of-living pressures remaining firmly front and center. Although sentiments around some expenses have softened slightly, essential bills such as housing, groceries, and utilities continue to dominate. Younger households, especially, face persistent financial anxieties.
With more than one in three Australians anticipating difficulties in managing at least one bill or loan repayment in the year ahead, the data paints a picture of many households focused primarily on maintaining financial stability rather than advancing long-term wealth.
For those navigating these challenges, staying informed about financial products, considering refinancing options, and comparing rates could be key steps toward managing household budgets effectively in 2026. —
This article was reviewed by Alasdair Duncan, Deputy Finance Editor, as part of Canstar’s fact-checking process.
Jessica Pridmore has over 12 years of experience reporting on finance and consumer issues across Australia and the UK. Her expert insights have been featured in numerous Australian and international publications.