One in four Australians consider selling homes in 2026 amid shifting property landscape

In a significant shift in Australia’s property market, new research indicates that over a quarter of Australians are contemplating selling their homes within the next year. The survey, conducted by Canstar, highlights a notable trend, with Queensland leading the charge in potential property sales.

According to the survey, one in three Queenslanders are considering putting their homes on the market by 2027. This trend is closely followed by Victoria, where 27 per cent of homeowners are contemplating a sale, Western Australia at 26 per cent, and New South Wales at 25 per cent. In contrast, South Australia shows a more conservative approach, with just 12 per cent of respondents indicating a readiness to list their properties.

The primary motivation behind this potential wave of property sales is downsizing. Canstar’s findings reveal that 39 per cent of homeowners are considering moving to smaller, more manageable dwellings. This trend is reflective of a broader desire for simplicity and reduced living expenses among homeowners.

Sally Tindall, data insights director at Canstar.com.au, commented on this trend, stating, “Borrowers are gradually adjusting to current interest rate settings, but renters have far less room to move. Almost half have had to cut back on essential spending just to keep a roof over their heads, and a growing share are relocating purely for affordability reasons.” This underscores the challenging economic environment that many Australians are navigating, particularly renters.

While downsizing is a significant factor, the survey also found that 27 per cent of those considering selling are looking to upgrade their homes in 2026. This indicates a level of confidence in the property market, with some homeowners seeking to improve their living conditions despite economic uncertainties.

However, not all motivations for selling are positive. Just under one-fifth of respondents cited economic conditions and higher loan repayments as reasons for considering a sale. This reflects the ongoing impact of interest rates on household budgets. Tindall highlighted this issue, noting, “It’s also telling that just over one-quarter of property owners are considering selling in the next two years, with some motivated by the fact that their repayments have become too hard to manage. That’s a clear signal that mortgage stress hasn’t eased.”

The survey also sheds light on the broader economic sentiment among Australians. Two-thirds of owner-occupiers feel prepared for interest rates to remain steady over the next 12 months, indicating a cautious optimism among borrowers. Similarly, investor confidence remains relatively stable, with 71 per cent expressing readiness for rates to hold.

However, renters face a more challenging landscape. Rising rents have forced 42 per cent of respondents to cut back on daily expenses, while only 31 per cent feel they can manage rent increases through careful budgeting. This highlights the growing financial pressure on renters and the difficult choices many are forced to make.

In addition to these findings, the Canstar research also reveals scepticism towards the government’s revised Home Guarantee Scheme. Only 15 per cent of respondents believe the scheme is genuinely helpful for first-home buyers. Tindall elaborated on this sentiment, saying, “Australians are increasingly cautious about policies like the revised Home Guarantee Scheme. Many worry these initiatives could unintentionally push prices higher or saddle new buyers with loans they can’t comfortably repay.”

As Australia navigates these complex economic conditions, the property market remains a focal point of concern and opportunity. The potential increase in property sales, driven by a mix of downsizing, upgrading, and financial pressures, will undoubtedly shape the housing landscape in the coming years.