A newly published article in Higher Education (January 7, 2025) takes a data-driven approach to a controversial question: Are international students responsible for Australia’s rental crisis? The authors don’t just answer the question—they directly challenge the narrative, calling their work an “evidence-grounded rebuttal against scapegoating international students for the rental crisis” (Mu & Soong, 2025, p.1).
Titled Scapegoating International Students for the Rental Crisis? Insights from Large-Scale Evidence (2017–2024) in Australia, the study examines the relationship between rental costs and international student numbers over seven years. It draws on an extensive dataset, including:
- 76 national-level data points (2017–2023)
- 79 capital city-level data points (2017–2024)
- 28 pre-COVID data points
- 48 post-COVID data points
Sourced from key institutions like the ABS CPI for Rent, the Department of Education, the Department of Home Affairs, and SQM Research, the article presents a detailed statistical analysis of how shifts in housing supply and demand impact rental prices—while accounting for rental inflation.
The study’s statistical modeling, laid out in seven well-explained tables, ensures accessibility for readers unfamiliar with complex data analysis (something this author greatly appreciated!).
Spoiler Alert: The Findings
For those who want to read the study firsthand, stop here! Otherwise, the conclusions are clear:
“Our findings demonstrate that international students do not contribute to the rise of rental costs at the national level; neither do they contribute to the rental costs in capital cities post-COVID.” (Mu & Soong, 2025, p.12)
“We therefore reject the assumption that the growth in international students ‘caused’ or exacerbated the housing crisis in Australia.” (Mu & Soong, 2025, p.12)
“There is no evidence that international students strain rental supplies in Australia. Across capital cities, only in Adelaide and Hobart did we find a correlation between increasing student numbers and lower rental vacancy rates.” (Mu & Soong, 2025, p.10)
One of the most striking insights? At the national level, rental prices tend to drop as international student numbers grow. The study found no scenario where an increase of 10,000 international students led to a rise in weekly rental costs.
For international educators and policymakers, this study is essential reading. And for those still pushing the myth that international students are driving up rents—perhaps someone should send this directly to Ministers Burke, Clare, and Peter Dutton.
The full report can be found here: Scapegoating international students for the rental crisis? Insights from large-scale evidence (2017–2024) in Australia | Higher Education
