“Sydneysiders already face rising rents, more costly mortgages, and ever deteriorating services and infrastructure that will only be made worse by the announced unplanned jump in its international student intake,” said Daniel Wild, Deputy Executive Director at the Institute of Public Affairs.
New research released today from the IPA shows the impact the federal government’s unplanned rise in net international student arrivals will have on Sydney:
- Last financial year, Sydney saw more than 95,000 international students arrive, absorbing the equivalent of almost one and a half times the new housing supply built in the period.
- This financial year, a further 70,000 net international students are expected to arrive, again absorbing more accommodation than the predicted new housing supply (114%).
- From 2023 to 2028, the expected arrival of a net 289,000 international students could absorb 79% of Sydney’s expected net new housing supply during the period.
“Migration has and will continue to be critical to our economic and social success into the future. However, many Sydneysiders are beginning to question the consequences of large, unplanned increases to migration settings that will only exacerbate their city’s housing shortage,” said Mr Wild.
“Given the size of this unplanned increase in the international student intake and Australia’s housing shortage, students will have no other option than to battle for properties alongside Sydneysiders also looking for housing.”
IPA research showed Australia is set to face a housing supply shortfall of over 252,000 homes between 2023 and 2028, with international students set to absorb 7 out of 10 new homes built in the same period nationwide.
“To its credit the New South Wales Government has recognised the impact of the surge in international student numbers and local universities need to play their part in housing the students which bring immense benefits to them,” said Mr Wild.
“The federal government must ensure policies are in place to accommodate its unprecedented surge in international students on top of other increases to migration. It will be Sydneysiders who suffer with long travel times and an inability to access vital services.”