The issue of 'housing stress' has created considerable media interest in recent times due to Australia's ongoing property boom. There can be little doubt that the perceived positive effects that living in better homes and neighbourhoods might have for children's development are among the motivating factors behind parental housing decisions. However, these benefits may come at a substantial financial cost. This paper uses data from the Longitudinal Study of Australian Children (LSAC) to explore the effects of housing costs on Australian families and children. It presents findings from LSAC that look at the effect of housing costs on parental mental health and children?s social and emotional well-being.