Thousands of homeowners forced to weigh selling homes they can no longer afford

One in four homeowners is contemplating selling within two years,as Australia’s housing costs surge to the nation’s top financial worry.

The findings in Canstar’s latest Consumer Pulse Report point to a potential uplift in listings and a market increasingly shaped by cost‑of‑living pressures heading into 2026.

Overall, 26 per cent of property owners are considering selling in the next 24 months.

The primary motivations are downsizing (39 per cent) and upgrading (27 per cent), but a concerning 19 per cent say they’re contemplating a sale because they can’t afford higher loan repayments.

Housing costs now outrank other essential expenses, and are more than double the concern they were five years ago, eclipsing groceries, energy bills, insurance premiums and movements in house prices.

Canstar head of research Sally Tindall said intent didn’t always translate into action but the signal was significant.

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Source: Canstar Consumer Pulse Report.

“I would say from the outset that there’s a difference between considering it and actually going through with it, but the fact that it’s on people’s minds is very telling,” she said.

“Of those considering selling, 19 per cent said they’re considering selling because they can’t afford the higher loan repayments… and it’s up 16 per cent from the year before, which is really interesting because, at least for now, we’re done with rate hikes.

“We have seen three rate cuts this year and even then, some families, some households are thinking it’s time to sell because they can’t keep on achieving. You can’t keep on scaling Everest.”

The pressure is most acute in Queensland, where 32 per cent of owners are mulling a sale, followed by Victoria (27 per cent), Western Australia (26 per cent), New South Wales (25 per cent) and South Australia (12 per cent).

Ms Tindall said generational stresses were particularly stark.

Source: Canstar Consumer Pulse Report.

For Millennials, monthly repayments on a $600,000, 30‑year home loan taken out before the RBA’s rate cycle began in May 2022 have climbed to about $3,734 – a 50 per cent increase.

Gen Z renters report unrelenting strain, with half experiencing a rent rise in 2025 and the average increase now $62 a week, up from $53 last year.

“One of the most essential things in life is to have a roof over your head, so for a lot of people, that’s the biggest concern these days,” Ms Tindall said.
“Mortgage rates are significantly higher than they were three years ago….and for people who haven’t refinanced or renegotiated their loans, that’s (added) 50 per cent more on your biggest monthly expenses.”

While some are pinning hopes on further RBA cuts, Ms Tindall warned this could backfire without more supply as a majority of existing owners surveyed (55 per cent) said they had no plans – or don’t expect to be in a position – to invest over the next two years.

Canstar head of research Sally Tindall. Picture: Tim Hunter.

For those open to buying, the key triggers are macroeconomic: lower living costs (24 per cent) and lower property prices (24 per cent), followed by lower interest rates (20 per cent).

“I think it could well be a hindrance in the long term because if we see further rate cuts, people will be able to borrow more… that pushes up demand. And the biggest problem we’re currently having with soaring prices is the imbalance between supply and demand,” Ms Tindall said.

“There are so many people looking for houses in key property hotspots but there are not enough houses for sale. So interest rates can really feed that demand and then keep pushing property prices higher, which then makes it even harder for first‑home buyers to actually get a foothold on the property ladder.”

Source: Canstar Consumer Pulse Report.

Evy Kassiotes, 26, took to social media recently to claim home ownership hadn’t quite lived up to her financial expectations.

“Owning a home is actually such a scam,” she said.

“I got a letter in the mail to tell us about the progression of our loan and how much we’ve paid off.”

Ms Kassiotes then expressed her shock at learning how little of a dent she had made in her mortgage in almost two years.

“What do you mean we’ve only paid off $3000 since October 2023? It is now May 2025,” she said.

“Like are you joking? Is this a joke? Am I getting pranked?”

Evy Kassiotes branded owning a home ‘such a scam’. Picture: TikTok/evy.kassiotes

Finder home loans expert Richard Whitten said new data showed the costs of owning a home over the life of its loan were close to double the sticker price – more than double in some cases – and anything people could do to reduce the term of that loan would see savings for the homeowner.

“New buyers will almost certainly underestimate the long-term costs of home ownership – it’s basically impossible to fully map them out,” he said.

“Interest charges on the home loan are massive. Home insurance premiums have risen sharply in recent years (and) then there’s strata, maintenance and repairs, upgrades, the list is endless.

“But the upsides are really positive.

“Paying off the loan principal builds up your wealth, and the property value will most likely grow over time.

“And if you can pay the loan off faster those interest costs drop.”

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