Report Suggests International Students Should Not Face Blame for Property Crisis
The Student Accommodation Council observed that rent prices started to rise in 2020 due to travel bans that led to a halt in migration, causing the majority of students to return to their home countries.
Group of Eight (Go8), the most research-intensive universities in Australia, stated that the blame should not be placed on international students for the nation’s property crisis. Instead, they pointed out that the crisis reflects supply-side issues such as underinvestment and government regulations.
“International education is crucial for Australia’s future prosperity and should be seen as a success story. Australia competes globally for top international students who contribute significantly to our knowledge economy,” remarked Go8 CEO Vicki Thomson.
Go8 emphasized that its member universities cater to over 83,000 students with accommodation facilities. They also highlighted that the arrival of international students does not directly impact the underlying supply-side factors affecting the housing market.
Earlier, the Property Council of Australia’s Student Accommodation Council highlighted that rent prices began to rise in 2020 due to travel bans that restricted migration and caused many students to go back to their home countries.
The Council’s report revealed a 30% increase in median weekly rents between 2019 and 2023, while student visa arrivals decreased by 13%. The Executive Director of the Student Accommodation Council, Torie Brown, emphasized the need to address all factors contributing to rent increases instead of solely blaming international students.
The report addressed misconceptions about international students driving rent demand and provided data showing that rent prices did not increase proportionally to the number of international students living in the country. The report also highlighted the importance of purpose-built student accommodations (PBSA) in alleviating pressure on the rental market.
Ms. Brown stressed the necessity of developing more PBSAs to accommodate the growing student population and reduce rental demand pressures. Currently, there are 662,895 foreign students studying in Australia based on data from January to February 2024 by the Department of Education.
