Although the Australian government capped international student numbers for 2023/24 partly to address housing concerns, a new report further signals that international students comprise just 4% of the overall rental market. 

But overall demand for student accommodation still outpaces supply. According to the report by student accommodation platform Amber, purpose-built student accommodation (PBSA) providers recorded a 16:1 student-to-bed ratio, underscoring a high demand in the sector.

According to Amber‘s Australia Student Accommodation Annual Report, over 83% of international students reside in Australia’s east coast hubs, primarily Sydney, Melbourne, and Brisbane, where housing needs are most concentrated.

Among Australia’s diverse student accommodation options, private accommodations take the largest share, with nearly 70.3% of students choosing this route.

On-campus housing serves 3.2% of students, and PBSA now accommodates 6.4%, up from 5% in 2021, showing growth in the purpose-built sector, where five large providers account for 80% of student beds.

Domestic students are also facing housing challenges as high rent costs are pushing many in cities like Melbourne and Sydney to live with family, with 34.9% now opting for familial settings, the report suggested.

Shared apartments remain a popular choice for those who move out, making up 21.9% of total student accommodation.

Meanwhile, the build-to-rent (BTR) sector is emerging as a promising option for students.

Though relatively new in Australia, BTR has begun attracting students, with 20% of beds in high-demand areas occupied by university attendees, according to research conducted by Amber and Belong Here.

Broader housing concerns persist in Australia, with major cities seeing notable growth in unmet housing needs, according to the report.

Families comprise 40% of Australian households but represent half of the nation’s unmet housing needs. Low-income households, in particular, face increasing rental stress and overcrowding.

In 2022, 5.4% of Perth households and 5.2% of those in regional Western Australia struggled with these issues.

It is yet to be seen what the impact of the capping of international students at 270,000 for 2025 will be. This report aims to uncover how the market might react to the ongoing changes
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Amber’s findings align with research published by the Student Accommodation Council in April 2024, which found that international students have “unfairly worn” the blame for Australia’s rental crisis.

“This year’s enrolment numbers show a consistent interest from international students. However, due to the revised policies, the student visa grants in Australia
have significantly dipped by 31% from July to December 2023, compared to the same time frame last year,” Madhur Gujar, co-founder and CBO, Amber, told The PIE News.

“It is yet to be seen what the impact of the capping of international students at 270,000 for 2025 will be. This report aims to uncover how
the market might react to the ongoing changes.”