Hoarding and Your Finances: The Hidden Cost for Australians in 2025

Australia’s relationship with ‘stuff’ is changing. While minimalism trends dominate Instagram, behind closed doors, many Aussies grapple with a very real—and often invisible—challenge: hoarding. Beyond the cluttered cupboards and overstuffed garages, hoarding has a direct, and sometimes devastating, effect on personal finances.

What Is Hoarding—and Why Does It Matter Financially?

Hoarding isn’t simply collecting knick-knacks or having a messy spare room. It’s a persistent difficulty discarding possessions, regardless of their value. This behaviour can lead to physical, emotional, and financial consequences. The Australian Psychological Society reports a growing recognition of hoarding as a mental health concern, with up to 2.5% of adults affected.

• Storage fees: Many hoarders rent storage units, costing Australians an average of $350–$500 per month in 2025, with prices rising as demand for space outpaces supply.

• Missed opportunities: Cluttered homes can make it harder to find valuables, important documents, or even cash—leading to unnecessary repurchases or lost financial opportunities.

• Insurance complications: Excess clutter may void home insurance policies or increase premiums, as insurers see hoarding as a fire and liability risk. New policy clauses in 2025 now require clearer disclosure of storage conditions.

2025 Policy Updates: How the Law and Insurers Are Responding

As hoarding gains attention, Australian state governments and insurers are updating their approaches. In 2025, several key changes have rolled out:

• NSW Fire Safety Regulations: The NSW government now mandates additional safety checks for properties flagged as hoarding risks. Landlords and tenants must provide evidence of compliance to avoid fines of up to $2,200.

• Insurance Disclosure Requirements: Major insurers like IAG and Suncorp have updated their PDS (Product Disclosure Statements), requiring policyholders to declare significant clutter or storage units, impacting eligibility and premium costs.

• Support Services Expansion: Federal funding for community clean-up and mental health support services has increased by 15% in 2025, making it easier for Australians to seek help without stigma.

These changes reflect a broader recognition that hoarding is not just a personal issue—it has community-wide implications for safety, wellbeing, and economic stability.

Breaking the Cycle: Practical Steps to Financial and Emotional Freedom

Reining in hoarding tendencies isn’t just about tidying up. It’s about reclaiming control—over your space and your finances. Here’s how to start in 2025:

• Calculate the true cost: Add up monthly storage fees, insurance premiums, and the value of unused items. Many Australians are shocked to find thousands of dollars locked away in clutter.

• Leverage government and community support: Programs like Clean Up Australia and state-run decluttering services now offer subsidised help for those affected by hoarding, including financial counselling and disposal assistance.

• Sell or donate: Platforms like Gumtree, Facebook Marketplace, and local op-shops are thriving in 2025, making it easier to turn excess items into cash or tax-deductible donations.

• Adopt a ‘one in, one out’ rule: For every new purchase, commit to letting go of something you already own. This habit helps curb spending and keeps your home manageable.

Real-world example: After downsizing in 2025, a Melbourne couple cleared out their storage unit, sold old electronics and furniture online, and saved over $4,500 in annual storage and insurance costs—money they redirected into their superannuation fund.

The Bottom Line: Hoarding Is a Financial Issue

Hoarding isn’t just about overflowing shelves—it’s about hidden costs, increased risks, and missed financial opportunities. As policy shifts and new support programs roll out in 2025, now is the time for Australians to tackle clutter head-on. By recognising the financial impact, leveraging available resources, and making intentional decisions, you can break free from the cycle and unlock a healthier financial future.