The report found that international students make up just six per cent of the rental market and capping their numbers will only reduce this by 0.6 per cent and have little impact on rental availability.
Research from Mandala for the Student Accommodation Council shows the proposed visa caps of international students will only lower their share of the rental market from 5.4 to 4.8 per cent in 2026 – an impact of less than one per cent.
Weekly mean metropolitan rents will also only be marginally impacted by 0.8 per cent on average- or just $5 a week. This reduction will not be felt in outer-suburban areas popular with families and retirees.
The report finds Victoria has the highest share of international students at seven per cent of renters, followed by NSW and WA at six per cent. Queensland and South Australia both sit at five per cent of renters. ACT, Tas and NT sit at four, three and two per cent, respectively.
The report also found the development of new purpose-built student accommodation (PBSA) had kept pace with the growth in international students – since 2015 the growth in international students has directly matched the growth in professionally managed student accommodation.
Student Accommodation Council Executive Director Torie Brown said for such minor housing gains, the government would be better looking at ways to increase the supply of accommodation rather than reducing demand.
“The student visa caps will have a very real economic impact, but have very little impact on rental availability,” Ms Brown said.
“We would be better off focussing on increasing the supply of PBSA, which has already demonstrated an extraordinary ability to match the demand from international students.
“The government originally announced that an increase in PBSA would allow universities to go above their caps, but no further information has since been forthcoming.
“Student visa caps will have very little impact on the high rental costs or low availability of rental homes.
“Instead of stopping demand from migration we need to focus on delivering more homes across all quadrants of Australia’s housing market.
“Student housing can only be used by students. Increasing supply of this housing stock literally soaks up students from the general residential market.
“Instead of unfairly blaming international students for the rental crisis, governments at all levels need to work together to expedite and accelerate student-only housing.”
“We need to tackle the full range of factors pushing up rents and shrinking housing supply, not pin the blame on one group,” she said.
Ms Brown said capacity existed within the market to increase the number of students living in PBSA.
“We surveyed our members and found 8,000 available PBSA beds at the beginning of semester two this year -moving students into these rooms would unlock thousands of homes in the regular rental market, easing housing pressure for everyone,” Ms Brown said.
“Let’s fill existing rooms first. We believe more can be done to help students find these beds before they arrive in the country.
“Student-only housing adds more homes specifically for students, helping to keep rents down in the regular market,” she said.
The report also found a quarter of international students live outside the rental market with another 14 per cent living in private student-only accommodation. Purpose-built student accommodation houses over 100,000 students across the country.
The full report can be found here:
