“Perth residents 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 Perth:
- Last financial year, Perth saw more than 15,000 international students arrive, absorbing the equivalent of 63% of the new housing supply built in the period.
- This financial year, a further 11,000 net international students will arrive, expected to absorb the equivalent to 41% of the predicted annual new housing supply.
- From 2023 to 2028, the expected arrival of a net 46,000 international students could. absorb the equivalent of almost a quarter of new houses expected to be built during the period.
“Migration has and will continue to be critical to our economic and social success into the future. However, many West Australians are beginning to question the consequences of large, unplanned increases to migration settings that will only exacerbate their capital 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 West Australians 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.
“Perth already has a rental vacancy rate well below the national average as renters struggle to find accommodation, the unplanned rise to the international student intake will mean that an already tight housing market is set to get worse,” 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 West Australians who suffer with longer travel times and an inability to access vital services.”