Contrary to popular belief, international students are not a primary cause of rising rents, according to new analysis from the Reserve Bank of Australia (RBA).

 

The RBA’s research shows that even a 50,000-person increase in population only raises private rents by about 0.5%— a “marginal” impact compared to broader market forces like supply constraints and wage inflation.

 

In fact, most international students do not enter the private rental market at all:

 

* 24% live with family or friends

* 15% in purpose-built student housing

* 3% in homestay arrangements

* 2% in other accommodation types

 

To further ease pressure, the Federal Government has capped international student arrivals since 2024 — but this week announced it will lift the cap in 2026, provided universities build more student accommodation.

 

The Student Accommodation Council welcomed the move. Executive Director Torie Brown said, “Every student housed in student accommodation is one fewer competing in the private rental market. This is a practical, scalable solution.”