A shocking number of Aussies have lost sleep, battled anxiety, or experienced depression due to rising living costs according to new research from Compare the Market that shows young people are among the most vulnerable.
In a survey of 1,000 Australians, 46% said that the cost of living had impacted their mental health while 75% had lost sleep over money stress.
Many Australians’ anxiety, depression and eating disorders got worse because of the cost of living (22%, 15%, and 2% retrospectively).
People who had never experienced anxiety, depression or an eating disorder before also experienced it for the first time (16%, 7%, and 2% retrospectively).
A closer look at the data reveals that Gen Z and millennials were much more likely to have experienced wellbeing challenges due to financial stress.
Two-thirds of Gen-Zs said the cost of living had negatively impacted their mental health (65%) particularly those already vulnerable to anxiety and depression.
About 37% said rising costs had made their anxiety worse while 23% said it had impacted their depression. Others reported the onset of anxiety (8%) or depression (8%) that they had not experienced before.
Has the rising cost of living impacted your mental health? | Gen-Z | Millennial | Gen-X | Boomers | Total |
No | 35% | 43% | 49% | 73% | 54% |
Yes, it has made my anxiety worse | 37% | 27% | 24% | 11% | 22% |
Yes, I now experience anxiety (I didn’t before) | 14% | 21% | 18% | 10% | 16% |
Yes, it has made my depression worse | 23% | 17% | 18% | 7% | 15% |
Yes, I now experience depression (I didn’t before) | 8% | 10% | 7% | 6% | 7% |
Yes, I have developed an eating disorder (I didn’t have one before) | 3% | 3% | 1% | 1% | 2% |
Yes, it has made my eating disorder worse | 3% | 2% | 1% | 1% | 2% |
Compare the Market survey of 1010 adult Australians conducted April 2024.
Compare the Market’s Economic Director David Koch said that younger people were among the hardest hit because they were not only facing steeper rents but much higher house prices as well.
“For some people the Australian dream is starting to feel like a nightmare: they’re running as fast as they can but not moving anywhere,” Mr Koch said.
“Let’s say you had your deposit but you’re unable to find a property due to low listing numbers. By the time you’ve found a house you like, the asking price has gone up again, faster than you’ve been able to save.
“It’s a new and stressful situation that has emerged after decades of stunted price growth in previously affordable cities like Brisbane and Adelaide.
“But we also see Gen Xers coming under pressure now their kids are entering their teens or a bit older but are still dependant. They are at a point where they might need to up-size but may not be able to afford a bigger mortgage.”
Mr Koch urged people experiencing mental health concerns due to financial stress or debt not to suffer in silence.
“Don’t let issues snowball because you’re worried about what people might think – there is no shame in reaching out to a financial counsellor or taking steps to remove yourself from a stressful situation,” Mr Koch said.
Free financial counselling is available via the National Debt Helpline on 1800 007 007.
Free legal advice about money matters for First Nations People is available at Mob Strong Debt Helpline on 1800 808 488.
For more information, please contact:
Natasha Innes | 0416 705 514 | natasha.innes@
Compare the Market is a comparison service that takes the hard work out of shopping around. We make it Simples for Australians to quickly and easily compare and buy insurance, energy, travel and personal finance products from a range of providers. Our easy-to-use comparison tool helps you look for a range of products that may suit your needs and benefit your back pocket.
