It is no lie that Australia is experiencing a rental housing crisis, like a lot of the world. Every city’s rental market is extremely competitive, making it difficult for young people, such as international students, to find adequate and affordable housing. Truth be told, recently, international students have been blamed for putting a strain on the rental market in the cities, although this is not entirely true. We want to give you an insight into what the rental market really looks like for international students so that you are well-versed when planning to study abroad in Australia.
Australia’s Current Rental Market
According to The Student Accommodation Council, international students only make up 4% of Australia’s rental market. It is a total myth that international students are single-handedly impacting the market, in turn causing the renting crisis. The report states a myriad of reasons as to why the current state of the renting market is so challenged, including changing household sizes, the increase and normality of remote workers needing extra space, rising costs of interest rates, an increase in interstate relocations, the rising cost of house prices and issues surrounding development proposal processes and prolonged planning restrictions on new infrastructure.
However, international students remain within the conversation regarding the rental market crisis, when in reality, the majority of international students live in private purpose built student accommodation (PBSA), which is usually located on campus or in close proximity to the university. Developers are continuing to construct PBSA so international students have secure accommodation upon arrival, which will take off any pressure international students may be causing in the renting market.
The Reality For International Students
Moving to Australia as an international student can be overwhelming due to a number of reasons. Moving abroad anywhere is challenging, and definitely pushes you out of your comfort zone. For many international students, finding accommodation is seeming to be one of the most difficult issues.
There is PBSA available, however, a lot of the time it is occupied or unaffordable. According to research, although there are new PBSA being built, it is projected that it won’t meet the future needs of the amount of international students planning to study abroad in Australia. The Property Council advises that with the “7,770 new beds due to come online by 2026” which they say won’t suffice to alleviate the demand in the private rental market.
In positive news, companies like The Switch are doing their part, having built purposeful and mindful student accommodation in Sydney, Melbourne, Adelaide and Perth. This greatly assists international students in finding a permanent place to live when arriving in Australia.
The Solution
It is in the country’s best interest to continue to support the influx of international students to study in Australia. According to a report by the University of South Australia, international students are among Australia’s most valuable exports, contributing up to $26.6 billion to the national economy in 2022. It is vital that the country maintains a responsibility to ensure there is adequate accommodation available for students to experience the once-in-a-lifetime opportunity of studying in Australia.
Reports suggest that in order to meet future demands, the future supply of PBSA will need to increase to 84,000 new beds by 2026.
According to the Tenants Union of NSW, they believe that aside from needing to improve the regulation of the private rental sector, a huge expansion of subsidised accommodation needs to be provided for international students when they find they are struggling to find suitable accommodation. The NSW Government provided this type of accommodation during the first COVID-19 lockdown, however, this stopped in 2022.
Streamlining planning and approval processes of developments in Australia will also help the current rental market crisis. ICEF Monitor suggests that if these processes are sped up and simplified, then we’d have more private rentals available which will not only assist international students but help ease the current pressure on the rental market.
The report similarly suggests implementing incentives for landlords and developers that may include tax benefits when turning accommodation into student friendly housing. On the other hand, ICEF Monitor proposes ensuring there is adequate support available to international students through their chosen universities when looking for suitable housing options. Housing assistance programs or partnerships could be created to reduce the stress for students finding accommodation.
By focusing on these solutions, Australia can help alleviate the pressures on the rental market for international students, ensuring they have access to affordable and suitable housing while they study. It is important they are comfortable so they have the best possible experience.
The Switch
