New data reveals how many new homes are being filled by international students

The Student Accommodation Council has hit back at “unfair” claims international students are exacerbating Australia’s housing shortage.

The IPA says that seven out 10 new homes are being filled by international students.

International students are expected to fill one quarter of Australia’s new homes over the next five years, according to latest research.

The Institute of Public Affairs (IPA) has revealed that international students filled seven out of 10 new homes across Australia over last financial year.

The IPA’s data showed the net intake of international students was 250,000 in the 2022/23 financial year, which is equivalent to 70 per cent of new housing supply.

“Australians are entitled to ask how they can find a home as inflation drives up mortgages and rent prices become unsustainable, yet the federal government has presided over the largest intake of international students who filled the equivalent of 7 out of 10 new homes,” IPA’s deputy executive director Daniel Wild said.

Daniel Wild of the IPA.

Student Accommodation Council’s acting executive director Adina Cirson.

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“The consequences of the unprecedented inflow of international students are not just felt by Australians but also the students themselves, whose educational experience suffers from the housing shortage.”

Mr Wild said this financial year, the government was expected to bring in a further 187,000 new international students, equivalent to 55 per cent of new housing supply.

Meanwhile the Student Accommodation Council has hit back at the IPA’s report saying students are not to blame for the housing crisis.

The council says the report “unfairly tries to blame the international student intake for exacerbating rental supply shortages across the country.”

The Student Accommodation Council’s acting executive director Adina Cirson said the report did not take into account that 75,500 students live across 200 purpose-built student accommodation developments.

Institute of Public Affairs: Net international student intake.

“Blame should not fall squarely at the feet of increased international student numbers, when planning, taxation, building costs, archaic approaches to rental reform and a lack of land supply are all impacting on the supply of housing across the nation,” Ms Cirson said.

The IPA’s report says that from 2023 to 2028, “we expect 771,012 net new international students to settle in Australia, which will be the equivalent of 308,405 households” – around one-quarter of Australia’s net new housing supply.

“While international students are an important market for our tertiary education sector, the first job of our leaders must be to ensure that there is adequate housing stock for those looking to get their first home or are in need of a rental,” Mr Wild said.

“Once again the federal government has been caught out without a single policy solution to accommodate the unprecedented surge in international students and other migrants, coming at an immense cost to Australians.”

The IPA says Australia’s housing shortfall was more than 250,000 between 2023 and 2028. Picture: Gaye Gerard

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The IPA released research in June stating that Australia is set to face a housing supply shortfall of over 252,000 homes between 2023 and 2028 with a contributing factor the unexpected increase in international student arrivals.

“We need to have an honest conversation as to the appropriate number of international students we can accommodate while not leaving Australians out in the cold,” Mr Wild said.

“The recently announced unsustainable jumps in migration will put further pressure on critical economic and social infrastructure, such as schools, roads, and hospitals, and will only further add to the acute and immediate shortage of housing.”

The council says the IPA’s report unfairly blames international students for the housing crisis.

Ms Cirson said work should be done on reducing barriers to the supply of at market, rental and affordable housing, including purpose-built student accommodation for both domestic and international students.

“Providing international students with appropriate purpose-built accommodation keeps them from competing in the private rental market,” she said.

“We need to understand that the delivery of student accommodation needs to be a priority at every level of government – rather than trying simply cut back on the number of students – which are vital to our service export industry and broader economy.”

The council has raised concerns the Australian University Accord review into Australia’s Higher Education system was considering capping the intake of international students.

“Any caps on the number of international students would have far reaching consequences,” Ms Cirson said.

”Our November 2022 research found that 16 per cent of students who complete their studies in Australia stay on to work here, critically alleviating workforce shortages and helping to bring vibrancy to our cities.”

She said the council would continue advocate all levels of government to ensure political leaders understood what needed to be done to get more housing for students.

Originally published as New data reveals how many new homes are being filled by international students