University Living, a leading global student accommodation marketplace, proudly presents its latest report decoding Australia Student Housing Market highlighting the increasing demand for education in Australia and the resulting shortage of affordable student accommodation. 60k on campus beds and 90k PBSA beds were mapped while preparing this report.
Amidst the rapid expansion of international higher education, the report reveals a rising number of students choosing Australia as their preferred destination. The numbers available for March, 2023 reveal 613,217 International students studying in Australia. This number was 27% higher than January – March last year.
With a surge in international students choosing Australia as their preferred destination, there is a pressing need for cost-effective and high-quality student housing. Rising rental costs, limited availability of beds, escalating living expenses, lack of awareness among international students, constraints in construction and supply, unregulated private rentals, and insufficient on-campus accommodation contributes to the current ongoing housing crisis.
The report reveals that Australia student housing market has witnessed significant growth in recent years and is estimated to be worth AUD 10 billion, with a CAGR of 17%. 10% of the market accounts for on-campus accommodation while the remaining 90% is off campus accommodation.
According to the report estimates, there are 60,000+ beds across 42 Universities in Australia comprising university and corporate managed accommodation. A few key PBSA players along with some small regional PBSA players are estimated to be managing around 90,000 beds. Further, around 26% of PBSA beds are occupied by domestic students and the balance by International students.
Apart from PBSA, students also have the option of Private Rentals and Homestays which is an unorganized market. The private apartment’s beds are estimated to be around 360,000 while the homestays are estimated to have around 100,000 beds. The total enrollment in the university segment in Australia is estimated to be around 15,50,000 students, including both domestic and international students. However, there is a significant need for more affordable housing options, as rental costs have increased by 10-20% in major cities.
Saurabh Arora, Founder & CEO of University Living said, “With the release of the report, our goal is to provide valuable insights into the dynamics of Australia’s student housing market. As the demand for international education continues to rise, it is crucial for stakeholders to have access to accurate data and insights to make informed decisions. Currently only 25% of the market is organized and with this report we aim to work with unorganized players to help them scale up and become a part of the organized segment.
Developed in collaboration with Bengaluru-based consulting firm RAYSolute Consultants, the report not only highlights the challenges faced by students and housing providers but also presents actionable strategies and recommendations to enhance student living conditions and transform the student housing landscape. It provides an extensive analysis of the student housing sector in Australia, covering a multitude of factors including demand dynamics, supply aspects, need gaps, opportunities for investment, future outlook, and strategies to overcome the current set of challenges.
