Rent crisis: International student surge causes fighting among powerful property lobby groups

Overseas students flocking to our shores has caused fighting among Australia’s powerful property lobby groups about the level of impact they are having on the nation’s rental crisis.

International students flocking to Melbourne has caused fighting among Australia’s powerful property lobby groups about the level of impact they are having on the nation’s rental crisis.

With Victoria’s universities a major drawcard for international students, it has been a magnet for many seeking to study abroad.

Institute of Public Affairs research showed that expected migration of 223,000 international students from 2023 to 2028 could absorb nearly half (46 per cent) of Melbourne’s proposed new housing supply throughout that period.

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However, the Property Council and the Student Accommodation Council have hit back, suggesting the IPA has unfairly blamed international student intake for rental supply shortages, while ignoring the 75,500 students who live across 200 purpose-built student accommodation developments across the nation.

Student accommodation at 593 Elizabeth Street, Melbourne is up for rent for $320 per week.

IPA deputy executive director Daniel Wild said while migration was critical to the state’s economic and social success, rising rents, more costly mortgages and deteriorating infrastructure would only be made worse by the unplanned jump in student intake.

“Many Melburnians are beginning to question the consequences of large, unplanned increases to migration settings that will only exacerbate their city’s housing shortage,” Mr Wild said.

IPA deputy executive director Daniel Wild

“Given the size of this unplanned increase in the international student intake and Australia’s

housing shortage, students will have no other option than to battle for properties alongside

Melburnians also looking for housing.”

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Deakin University students Hoa Pham, Vency Patel, and Elizabeth Ruiza, on campus. Melbourne was ranked the top Australian city for students in 2022 and ranks among the best places in the world for international students to study abroad. Picture: Ian Currie

But Student Accommodation Council acting executive director Adina Cirson rejected the IPA claims, criticising them for solely blaming the rental crisis on increased international student numbers when planning, taxation, building costs, “archaic approaches” to rental reform and a lack of land supply were all impacting the supply of housing.

“Rather, we should be working on reducing barriers to the supply of at market, rental and affordable housing, including purpose-built student accommodation for both domestic and international,” Ms Cirson said.

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

She added that the delivery of student accommodation needed to be a priority at every level of government, rather than simply cutting back on the number of students, who were vital to the service export industry and broader economy.

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Originally published as Rent crisis: International student surge causes fighting among powerful property lobby groups