Correlation is not necessarily causation, but…
Rental growth in capital city rental markets since international borders re-opened in December 2021 has been inversely related to their provision of Purpose-Built Student Accommodation (PBSA) beds relative to international students. That is, those with the lowest provision, such as Sydney and Perth, have experienced the largest increases in asking rents in this time. In contrast, Canberra, which has the highest provision (and where the Australian National University is able to offer an accommodation guarantee to new students) has experienced only modest rental growth.
While there are many caveats to the chart below, it nevertheless highlights the benefits if the Higher Education sector to stepped up to the plate to provide more accommodation for its growing international student intake. Adequate non-market housing aids their students by sheltering them from the challenges of the broader rental market in times such as these, while also somewhat insulating the rest of the rental market from spillover effects on rents that may result due to variations in student demand.
For more information on student housing and rental markets, please feel free to contact Rob Burgess at rob-burgess@quantifysi.com.au or Angie Zigomanis at angie.zigomanis@quantifysi.com.au
