As housing pressure continues to dominate headlines, politicians are once again circling international students as an easy scapegoat. The Coalition’s proposed cap on student visas—under the guise of easing rental demand—won’t solve the housing crisis, but it will put a $4.1 billion hole in the economy and risk 22,000 jobs.
Let’s be clear: international students are not driving the housing crisis. Independent modelling produced for the Student Accommodation Council for Mandala shows that even reducing international student numbers by 25 per cent would only cut their presence in the rental market by 0.6 per cent and drop rents by just $5 a week. The economic trade-off is not worth it.
While we wholeheartedly reject the premise that international students are to blame for the housing crisis, both sides of politics have made clear their desire to reduce student demand in the rental market. Rather than reach for blunt cuts, there is an evidence-based alternative: require metropolitan universities to offer a first-year accommodation guarantee for international students. This targeted approach addresses housing concerns, protects Australia’s global education brand, and unlocks private investment in purpose-built student accommodation (PBSA).
This is not a radical proposal—it’s a well-established practice around the world. In the United Kingdom, many universities guarantee accommodation for all first-year students, domestic and international alike. Closer to home, the Australian National University already offers a housing guarantee for all first-year undergraduates, setting national benchmark that others should follow.
Guaranteeing accommodation means students secure a place to live before they arrive, keeping them out of the broader rental market and alleviating the very concerns the proposed visa cap aims to address. It also boosts demand for PBSA, helping developers bring new student-only housing to market—stock that is purpose-built, professionally managed, and doesn’t compete with local renters.
It also ensures that students are living in professionally managed accommodation, regulated by state tenancy laws and required to comply with the University Accord’s Code to Prevent and Respond to Gender-based Violence.
Since 2015, private PBSA supply has grown in lockstep with international student numbers—up 74 per cent, housing more than 100,000 students across the country. It’s clear this sector is ready and able to grow again. What’s needed is policy certainty and a coordinated approach.
A first-year accommodation guarantee is a practical step that:
- Provides confidence to students and parents when choosing Australia.
- Unlocks private investment in student housing supply.
- Restores the social license of international education in the minds of voters.
- Ensures students are living in the only housing type that is specifically built for them, meaning they aren’t competing for residential rentals.
This is a model that works—and it’s already working. Let’s build on it.
If we’re serious about solving the housing challenge and protecting Australia’s global education leadership, it’s time to stop chasing headlines and start backing proven solutions.
Torie Brown is the Executive Director, Student Accommodation Council
