Housing Costs Continue to Top Financial Concerns for Australians in 2026
Insights from Canstar's Latest Consumer Pulse Report
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According to Canstar's latest Consumer Pulse Report, the cost of housing remains the foremost financial concern for Australians as they head into 2026.
Despite three cash rate cuts in the past year, 21% of Australians identify housing expenses, including mortgages and rents, as their primary financial worry.
This marks the fourth consecutive year that housing costs have topped the list of financial concerns, with the percentage more than doubling over the past five years.
PropTrack's Housing Affordability Report supports these findings, indicating that median-income households can afford only 15% of homes sold nationally in the fiscal year 2025. Saving for a 20% deposit now takes the typical household approximately 5.8 years, highlighting the ongoing challenges in achieving homeownership.
Owner-occupier borrowers appear slightly better positioned than last year, with 66% feeling equipped to handle current interest rates in 2026, up from 60%. However, renters are under acute pressure, with 50% experiencing rent increases averaging $62 per week in 2025, up from $53 in 2024. This has led 42% of renters to cut spending and 17% to seek more affordable accommodation.
Income expectations remain subdued, with only 17% of Australians certain they will receive a pay rise in 2026, while nearly half do not anticipate any increase. Despite this, 31% of respondents feel optimistic about their financial outlook, and many are focusing on saving, with 68% regularly setting money aside-up from 62% last year. The average monthly savings amount has increased by $211 to $769.
In summary, while some Australians are finding ways to adapt, the persistent concern over housing costs underscores the need for continued attention to affordability and financial stability in the housing market.
Published:Monday, 12th Jan 2026 Source: Paige Estritori
Please Note: If this information affects you, seek advice from a licensed professional.
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According to Canstar's latest Consumer Pulse Report, the cost of housing remains the foremost financial concern for Australians as they head into 2026. Despite three cash rate cuts in the past year, 21% of Australians identify housing expenses, including mortgages and rents, as their primary financial worry. This marks the fourth consecutive year that housing costs have topped the list of financial concerns, with the percentage more than doubling over the past five years. - read more
