According to the Student Accommodation Council (SAC), claims that international students are driving Australia’s housing crisis lack factual support, the Property Council reported.
A recent report highlighted that international students make up only 6% of the rental market and are largely concentrated in central business districts, with 73% of local government areas (LGAs) having an international student presence of less than 1%.
“We keep hearing that international students are to blame for the housing crisis, but this does not reflect reality,” said SAC executive director Torie Brown (pictured above). “Rents began skyrocketing in 2020, when there were no international students arriving in Australia.”
The report said that purpose-built student accommodation (PBSA) has mitigated the impact of rising international student numbers.
Growth in professionally managed student housing has aligned with international student increases since 2015. Notably, approximately 30% of students in PBSA are domestic, often from regional areas.
“Purpose-built student accommodation takes both domestic and international students out of the rental market,” Brown said.
These accommodations offer fixed, all-inclusive rents that cover utilities, internet, and amenities, providing a secure option for students navigating the housing market.
Research commissioned by the SAC revealed that limiting international student visa caps would barely affect the housing market.
Reducing visa numbers to 270,000 annually would lower their rental market share by less than 1% and decrease average metropolitan rents by only $5 per week.
“The growth of student accommodation has matched the rise in international student numbers, easing housing market pressure by keeping students out of competition with families for private rentals,” Brown said.
The SAC report called for policymakers to address long-term structural issues in Australia’s housing market rather than targeting international students.
Over the past four years, median weekly rents rose 30% while student visa arrivals fell by 13%, demonstrating limited correlation.
“We need to address decades of structural failures across our housing markets and not unfairly pin the blame on a single group,” Brown said.
Purpose-built student housing continues to be a critical component for both domestic and international students, offering safe and reliable housing amid broader market challenges.
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