Housing Costs Continue to Top Financial Concerns for Australians in 2026

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.