Universities across Australia could soon face new regulations limiting their international student enrolments to a maximum of 40 per cent – but it may not be enough to ease the housing crisis.
The proposed cap that would be put in place by the Federal Government, would also aim to bring international student numbers back to 2019 levels and could be in place for two years, starting January 1, 2025.
According to the AFR, the University of Sydney would need to shed 12,150 places to return to 2019 levels and a further 2598 to reduce numbers to 40 per cent of enrolments.
While the University of Melbourne would need to cut 7725 overseas student places.
First National Real Estate Maitland Managing Director, Alexandra Haggarty, said the government needed to do more than just address international students.
“We don’t have anywhere near enough houses before we add to our population, so what I think the government is trying to do at the moment is a bit of a kitchen sink approach – just throwing everything at it, trying to get roofs over families heads,” Ms Haggarty said.
“I think it needs to be a multi-faceted, multi-layered approach.
“As for whether it’s actually going to help the people who are currently homeless, I don’t know how effective it would be.”
She said capping international students would only free up housing around universities.
“Traditionally for foreign students, there are large cohorts of student accommodation that is purpose-built around education facilities, whether that’s universities or TAFEs,” she said.
“And they’re designed as student accommodation so that’s what would be getting the vacancy rates.”
Executive Director of Better Renting, Joel Dignam, said the move would impact the number of people coming into the country, but more would be needed to help renters.
“Those students are quite a small part of the overall rental market and they are highly concentrated in a few specific areas and specific buildings that are purpose-built for student accommodation and not really interchangeable with the broader rental market,” Mr Dignam said.
“Having fewer international students coming to study commerce at Melbourne University, what impact is that going to have on three-bedroom homes in the outer suburbs?”
Ms Haggarty said the government must work on increasing the number of available properties.
“We need property that’s targeted to the most vulnerable parts of our community, to protect them,” she said.
“We can only keep progressing if we bring everyone with us.”
“Where their focus needs to be more is in that social and affordable housing space.
“They’re the people who are the most affected by the housing shortage.”
Mr Dignam said the government was looking at all options to try and boost supply levels and take the pressure off housing, but it remains difficult.
“It’s been a really tricky environment with higher interest rates and higher construction costs,” he said.
“And from what I’m seeing, it’s going to take a while.”
“We need to ensure there’s enough housing for the people in this country who need it.
“And I think we can, we can meet that challenge.”
