Boosted numbers of international students post-COVID made a marginal contribution to rent increases, according to research from the Reserve Bank of Australia (RBA).
Rent prices have increased by more than 40% over the past five years.
RBA analysis shows the rise in rental costs pre-dates the uptick in students.
Last year, the Labor Government attempted to legislate caps on overseas enrolments. Its plan would have required universities to build accommodation to increase enrolments.
Rents vs. students
The national median rent price has increased by more than 40% over the past five years. The median is the
‘middle’ rental price in an area and can be thought of as the ‘typical’ rent.
Australia’s median rent is $665 a week, according to the latest quarterly figures from housing market analysis firm Cotality (previously CoreLogic).
Government figures show 800,000 international students enrolled to study in Australia in the year to April 2025. This represented an 18% increase on enrolment figures from 2019.
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RBA
The RBA has published analysis showing international student arrivals contributed to a “small share of the rise” in demand for rentals.
“Much of the rise in advertised rents [occurred] before borders were reopened,” the RBA research paper said
It drew on data showing that about half of international students are private renters. A separate analysis conducted by the Property Council of Australia shows these students make up 4% of the overall rental market.
Govt plans
Last year, the Government tried to pass legislation to cap the number of international students arriving in Australia annually. It was blocked by the Coalition and the Greens.
Under the plans, universities would have been able to accept a higher number of overseas students if they agreed to build more student accommodation.
The RBA research noted a recent increase in the number of approved student accommodation projects. It blamed higher rents on construction costs and low approval rates.
