Capping international student numbers will have little impact on Australia’s rental market.
New research commissioned by the Student Accommodation Council found average metropolitan renters would save less than one percent in rent through the cap, with outer-suburban rents unchanged.
Council Executive Director Torie Brown said the report found international students made up six percent of the rental market and capping their numbers would only reduce this by 0.6 percent and have little impact on rental availability.
Ms Brown said proposed visa caps of international students would only lower their share of the rental market from 5.4 to 4.8 percent in 2026.
“Weekly mean metropolitan rents will also only be marginally impacted by 0.8 percent on average, or just $5 a week. This reduction will not be felt in outer-suburban areas popular with families and retirees,” she said.
Ms Brown said 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.”
She 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.”
She said the government originally announced that an increase in PBSA would allow universities to go above their caps, but no further information had since been forthcoming.
Read the full report: Beyond the Visa Cap: Why Restricting International Students Won’t Solve Australia’s Housing Crisis.
