‘Very little impact’: International student cap won’t solve rental crisis

Capping international student visas will have a less than 1 per cent impact on rents, new research shows. 

Research from Mandala for the Student Accommodation Council (SAC) reveals that international students have been unfairly blamed for rising rents. 

Less than 6 per cent of renters across Australia are international students, the report states. 

It found that a quarter of international students live outside the rental market, such as staying with family or friends, while a further 14 per cent live in purpose-built student accommodation (PBSA). 

From next year, the Australian government plans to cut international student numbers from 397,000 to 270,000

The proposed caps on student visas will reduce international students’ market share from 5.4 per cent to 4.8 per cent of the rental market in 2026, the SAC report says – a saving of less than 1 per cent. 

In dollar terms, this equals an improvement of around $5 per week. 

“Student visa caps will have very little impact on the high rental costs or low availability of rental homes,” says Torie Brown, executive director of the SAC. 

However, when it comes to the broader economy, she warns the cap “will have a very real economic impact”. 

According to the report, international student caps could cost the Australian economy $4.1 billion in lost GDP, and the loss of 22,000 jobs. 

“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,” Brown says. 

“We need to tackle the full range of factors pushing up rents and shrinking housing supply, not pin the blame on one group.”