Canstar’s 9th annual Consumer Pulse Report reveals how Australians expect 2026 will play out financially across mortgages, rents, income, debt, savings and property.

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Financial Worries
Personal Debt
Savings Resilience
Property Pressures

Monday, 1 December 2025 – The cost of housing, which includes mortgages and rents, remains the nation’s number one financial concern heading into 2026, despite the three cash rate cuts this year, according to the ninth annual Consumer Pulse Report.

The report, which is based on the opinions of more than 2,000 Australians, found 31% were feeling optimistic about their financial outlook for the year ahead. 

Income expectations also remain subdued for 2026, with fewer than one-fifth (17%) of Australians certain they’ll see their pay rise next year, while nearly half (49%) don’t expect a pay rise at all.

That said, Australians remain laser-focused on saving, with 68% actively putting money aside regularly, with the average amount saved per month rising by $211 or 38%. 

Biggest financial worries

The cost of keeping a roof overhead remains Australians’ biggest financial worry, with 21% saying it was their biggest money concern for 2026.

The financial strain from higher interest rates has taken its toll on the country. Housing has been the most common financial concern for Australians for four years in a row, and is now more than double what it was five years ago, according to Canstar’s Consumer Pulse Report.

While 66% of owner-occupier borrowers feel equipped to handle current interest rates in 2026, up from 60% last year, renters find themselves under mounting pressure. Half saw rents rise in 2025 by an average of $62 per week (up from $53 in 2024), driving 42% to slash spending and 17% to look for more affordable housing.

The price of groceries was cited as the second biggest worry, by 18% of Australians, followed by energy prices (10%), which, nine years ago, when the report was first published in 2017, was by far the most common financial worry at 30%.

 

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Personal debt levels rise

The proportion of Australians holding personal debt, excluding property loans, dropped in 2025 to 33%, down from 35% the year before, however, of those with debt, the amount they hold has shot up. The average personal debt carried by Australians climbed to $17,634 in 2025, up from $15,179 last year, as households navigate sustained high cost-of-living pressures.

Of those with debt, men are more likely than women to carry credit card debt (58% vs 44%), while women carry a larger share (27%) of higher education loans – more than double the rate of men (13%) – and BNPL services, at 26% compared with 21% of men.

Encouragingly, 78% of Australians with personal debt are committed to reducing what they owe. 

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Australians show savings resilience

Despite cost-of-living concerns, Australians are continuing to save. The number of people saving each month has jumped to 68%, an improvement from 62% last year and 51% in 2023. They are also saving a greater amount. The average stashed away each month has surged to $769, up from $558 in 2024.

While more Australians are saving, there is a clear gap between men and women. The average total saved or invested (excluding the family home and superannuation) for women was $42,945 compared to the $58,326 held by men.

For the second consecutive year, saving for a holiday remains the number one goal at 15%. However, buying a house (14%) has risen, becoming the second-most important goal.

 

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Property pressures persist despite interest rate relief

More than one-quarter (26%) of property owners are considering selling within the next two years and while downsizing and upgrading are the main reasons, a concerning 19% of people considering selling are doing so because they cannot afford higher loan repayments, up from 16% the year before.

When it comes to buying, nearly two-fifths of Australians worry that the revised Home Guarantee Scheme (5% deposit for first home buyers) will either push up prices (27%) or increase market competition (12%), with only 15% viewing it as genuinely helpful for first-time buyers.

“Three cuts to the cash rate brought some much-needed relief to mortgage holders, but the Canstar Consumer Pulse data confirms that for many, it simply hasn’t been enough,” says Tindall.

“Housing remains the nation’s top financial concern. Whether it’s mortgage repayments or rents, the meteoric rise to what is, for most people, their biggest financial expense has been difficult to shoulder.

“Taking action, such as switching to a cheaper loan, is an effective step that can ease financial strain and give Australians more control over their budgets.

“The mortgage might be, for many, the biggest monthly expense, but households should not stop at just one bill. Write out a list of recurring expenses and make that your to-do list to compare and switch.

“Canstar’s Cost of Living Comparison tool shows that households on average-priced plans can save thousands just by switching a handful of bills.

“It’s positive to see fewer people in debt, however, of those that are, the total amount owing is moving in the wrong direction. If that’s you, make 2026 the year you knock down what you owe.

“While there’s no silver bullet, making a roadmap out of debt will help you see the end goal and give you the motivation to make the tough decisions needed to get there.

“Heading into 2026 is the perfect time to write out your goals for the next year and beyond, and think about what steps you need to take. Success doesn’t mean you have to have knocked off your debt completely or bought your dream home by this time next year, but if you can finish 2026 having made progress towards your goals, it will be a year that can be chalked up as a win.”

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For more insights, data or commentary on the Consumer Pulse Report, please contact Canstar’s media team: media@canstar.com.au

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