International students not responsible for Australia’s rent hikes, housing crisis -Study reveals

A recent study by the University of South Australia has cleared international students of any role in the rising cost of rent, debunking the claim that their increasing numbers contribute to Australia’s ongoing housing crisis.

The study, which examined rental data from 2017 to 2024, has challenged claims by some politicians who blame international students for contributing to the nation’s rental crisis.

According to ABC News, the University of South Australia’s study analyzed longitudinal data from government departments and the Australian Bureau of Statistics.

Lead researcher, Professor Michael Mu, explained that there was no statistically significant correlation between the number of international students and the cost of rent in major Australian cities.

“Post COVID, throughout Australia, and in all the capital cities we researched, there was no statistically significant correlation between international student numbers and rental costs,” Mu said. 

International students’ housing needs differ from locals 

Professor Mu noted that international students have different housing needs compared to local residents, which may explain why they are often blamed for rental issues.

“Some of them were in student accommodation, some of them would choose shared bedrooms, so obviously their housing needs were somewhat different from the local people,” he said.  

His research included a literature review which found that international students are frequently scapegoated for broader societal problems.

Political debate intensifies over international student numbers 

As Australia approaches the election, political rhetoric around international students is heating up. Professor Mu argued that international students became an easy target for politicians because they did not vote.

He called on both sides of politics to base their policy decisions on evidence, rather than using international students as a political tool.

“Politically they were the easy target because they don’t vote. I think all these factors came together and they were thrown under the bus,” Mu said. 

However, opposition politician Senator Sarah Henderson criticized the study’s findings, claiming that international students are indeed contributing to housing pressures in inner-city areas.

“Even the Department of Education has stated that there are ‘significant housing pressures in inner-city locations with a higher concentration of international students,’” she said.  

Henderson also pointed to data that shows a large number of international students occupying private rental homes.

University sector warns of economic impact of reducing international students 

The university sector has warned that cutting international student numbers could have serious consequences for Australia’s economy.

The chief executive of the Group of Eight universities, Vicki Thomson, which relies heavily on international student fees, cautioned that reducing student numbers could stretch university research efforts.

“What we’ll start to see in particular is a real stretch on our research effort,” Thomson said.  

“This is highly critical at the moment because what we’ve already seen is the Trump administration has notified several of our universities that research grants are being withdrawn or withheld.” 

She emphasized that international education is Australia’s third-largest export industry, contributing significantly to the nation’s economy.

Thomson also expressed concern that political rhetoric targeting international students could harm the broader economy.

“It [international student education] supports the economy, it was responsible for [a large part of] our economic growth in 2023 … so there’s a big impact on the broader economy,” she said.  

She urged politicians to be cautious, warning that any negative impact on the international student sector could have long-lasting effects.

International students feel unfairly blamed for the rental crisis 

Reports inform that international students have expressed frustration at being blamed for the housing crisis. An international student  at the University of South Australia shared her experience;

“We pay our own contribution … a lot of international students actually pay twice or triple the tuition than the locals.”. 

“We also pay taxes when we work. Some of the blame for the housing is a little bit unfair because we are here on legal visas. 

“It does make it sound like they don’t want more international students here,” She said.  

In response to the debate, university leaders are urging caution. Vicki Thomson warned that any political move to reduce international student numbers would have far-reaching economic consequences.

“Be careful what you wish for. Do not put our third-largest export sector at risk. 

“A $51 billion economy and, more than that, a sector which actually builds our skills base [and] does not damage the economy but enhances the economy. 

“Do not put that at risk for cheap political point scoring,” she said, highlighting the crucial role international students play in Australia’s economy and research efforts. 

As the election approaches, the debate over international students and their role in the housing market is expected to continue, with both sides of the political spectrum weighing in on the issue.