Research Reveals What's Worrying New Zealand Youth the Most: Cost of Living, Mental Health Top the List

New Zealand's young people are navigating a complex landscape of pressures that are taking a significant toll on their wellbeing. Recent research from the Youthline ASB State of the Generation 2026 report paints a vivid picture of the challenges facing rangatahi aged 12 to 24. Conducted by independent research firm TRA in early 2026 with over 1,000 respondents, the survey highlights interconnected issues like mental health struggles, skyrocketing living costs, job insecurity, and the pervasive influence of social media and artificial intelligence. While a majority express positive feelings about their lives, a notable portion—particularly from vulnerable communities—report heightened anxiety, loneliness, and stress. This comprehensive analysis delves into the data, explores root causes, stakeholder views, and potential pathways forward, offering insights for families, communities, and policymakers committed to supporting Kiwi youth.

The report arrives amid broader trends captured in the Ministry of Social Development's Youth Health and Wellbeing Survey 2025, which polled nearly 9,400 secondary school students aged 13 to 19. Together, these studies underscore a youth wellbeing crisis exacerbated by economic strains and digital overload, with calls for urgent, coordinated action growing louder.

🔍 Decoding the Youthline ASB State of the Generation 2026 Report

The biennial Youthline ASB State of the Generation report serves as a critical barometer for youth sentiment in Aotearoa New Zealand. This 2026 edition, surveying 1,041 young people evenly split between ages 12-17 and 18-24, reveals that 59 percent pinpoint mental health as the paramount issue confronting their generation. When asked for the single biggest challenge, social pressure topped the list at 25 percent, followed by cost of living at 18 percent and the job market at 17 percent.

Methodology-wise, TRA employed a nationally representative online survey from late January to mid-February 2026, ensuring diverse ethnicities including Māori, Pasifika, Asian, and migrant communities. Respondents described their emotions: over half used solely positive terms like 'happy' or 'excited,' but 38 percent mixed positive and negative, and 10 percent exclusively negative words such as 'stressed,' 'anxious,' or 'lonely.' Negative sentiment spiked to 14 percent among 18-24-year-olds, 21 percent in rainbow communities, 20 percent among disabled youth, and 17 percent for neurodiverse individuals.

Comparisons to prior reports (2021, 2023) show persistent themes amplified by post-COVID shifts, including a surge in Youthline emergency referrals—from one per week five years ago to four daily in recent months. Dive deeper into the full findings via the official report.

🧠 Mental Health: The Overwhelming Top Priority

Mental health dominates youth concerns, with 59 percent naming it the most critical generational issue and 32 percent flagging insufficient support as their primary worry. Barriers abound: long wait times, geographic limitations, transport hurdles, financial costs, stigma, and a bewildering service landscape. Alarmingly, 41 percent couldn't name a single youth mental health organization, despite 60 percent recognizing Youthline as a go-to.

Vulnerable groups bear disproportionate burdens—Māori, Pasifika, Asian, migrants, rainbow youth, and those with disabilities face systemic inequities rooted in discrimination rather than inherent traits, as Youthline CEO Shae Ronald emphasizes. The Youth Health Survey 2025 corroborates this, revealing 21.2 percent of 13-19-year-olds with probable psychological distress (K6 scale), 13.2 percent with high depressive symptoms, and 24.2 percent engaging in non-suicidal self-harm in the past year. Suicidal ideation affected 19 percent, plans 12.9 percent, and attempts 5.7 percent.

These figures align with national trends: New Zealand's youth suicide rates remain among the highest in OECD nations, with provisional 2025 data showing little decline. Economic ripple effects compound this; family financial stress correlates with youth distress, as 47 percent of younger respondents worried about parental money woes.

💰 Cost of Living: Squeezing Basics and Family Stability

Eighteen percent rank cost of living as their top singular challenge, with 38 percent overall citing money pressures when listing multiple issues. For 18-24-year-olds, affording food, bills, and housing looms large, while younger teens (12-17) feel secondary anxiety from whānau strains—nearly half report parental stress over finances impacting their daily lives.

The Youth Health Survey echoes housing instability: 5.2 percent couch-surfed recently, with others in emergency housing, cars, or motels. Family worries centered on petrol (19 percent), rent (19 percent), power (17 percent), and groceries (15 percent). In a nation grappling with inflation and housing shortages, these pressures erode security, fueling anxiety and limiting access to essentials like mental health care.

Stakeholders like ASB's Rebecca James note parallels with adult concerns, advocating financial literacy programs in schools to mitigate long-term effects. Real-world cases abound: young Kiwis skipping meals or delaying GP visits due to costs, perpetuating a cycle of poor wellbeing.

💼 Job Market Anxieties: Barriers to Entry and Future Fears

Lack of opportunities ranks second overall (52 percent), with 17 percent deeming it the top issue. Entry-level roles demand unrealistic experience, leaving graduates adrift amid economic slowdowns. AI exacerbates this—57 percent fear job displacement, 20 percent very worried overall.

• Key fears: Automation replacing roles (57 percent), skill obsolescence.
• Demographic hits: Higher in older youth, migrants.
• Interlink: Job stress ties to mental health (59 percent overlap).

Ronald highlights post-graduation voids, worsened by recent crises like fuel shortages curbing mobility.

😰 Social Pressure: The Relentless 'Have It All Figured Out' Expectation

Twenty-five percent feel crushed by demands to appear perfect, sourced from adults (expectations), peers (comparison), and social media (curated lives). This fosters isolation, with quotes like, “It feels like we’re under constant pressure to have everything figured out.”

Compounded by bullying (40 percent top issue), often online and inescapable (27 percent), it drives negative emotions and self-harm risks.

📱 The Digital Overload: Screens, Social Media, and AI Shadows

Sixty-six percent battle phone addiction/screen time; 65 percent flag social media ills. Benefits like connection exist, but harms—cyberbullying, FOMO, misinformation—dominate. Over half seek stricter platform controls, algorithm transparency, and school digital literacy.

AI worries: 65 percent doubt reality discernment, 61 percent misinformation fears. Youth turn to ChatGPT (20 percent weekly) more than therapists (16 percent), signaling innovation gaps.

🚧 Navigating Barriers to Mental Health Support

Despite 29 percent valuing counselling, access falters. Informal aids (parents 53 percent, friends 49 percent) prevail, but formal systems overwhelm. Youthline sees record demand, urging empathetic, online-savvy expansions.

📊 Broader Insights from Complementary Surveys

The MSD's 2025 Youth Health Survey (13-19-year-olds) shows 65.6 percent good/excellent wellbeing, but 21.2 percent distress, 31.6 percent eating risks. Screen time: 56 percent 5+ hours daily. Explore details in the infographic report (PDF).

🏛️ Government's Response: Draft Strategy 2026-2036

The Health Ministry's draft Mental Health and Wellbeing Strategy commits $2.859 billion annually, targeting 80 percent specialist access within 3 weeks. Priorities: prevention (25 percent investment), youth-tailored services, workforce growth (500 trainees/year). Suicide rates and distress rises prompt equity focus, though cost of living links implicit. Full draft: PDF download.

🗣️ Voices from the Frontlines: Experts and Youth

Shae Ronald: “Inequity and discrimination cause distress in underserved communities.” Rebecca James: “Financial literacy reduces money anxiety.” Youth voices: “Make support feel normal... listen without judgment.”

✨ Pathways Forward: Actionable Solutions and Optimism

Solutions span policy (integrated services, digital platforms), community (school programs, financial education), and personal (resilience building). Youth want empathy, life skills, and normalized help. With collaborative effort, New Zealand can foster thriving rangatahi.

Photo by Markus Winkler on Unsplash