Australian Student Housing: An In-Depth Analysis of Trends & Insights

Australia’s higher education landscape contributes significantly to its economy and cultural milieu, establishing the country as a global leader in academic excellence. This prominence has fueled growth in Australia’s student accommodation market, which caters to a diverse student population.

With over 40 universities, the number of students is projected to reach approximately 1.6 million in 2024, highlighting the country’s appeal as a safe and welcoming destination for learners from around the globe.

In addition to the world-class institutions, Australia additionally boasts a high standard of living and post-study work opportunities, allowing students to gain valuable insights and practical experience in a competitive global market.

Student Accommodation Market Share in Australia

Australia’s student accommodation market is growing increasingly complex and multifaceted, mirroring the vastly different needs of a diverse student population. This market is broadly segmented into three primary categories including On-Campus Housing, Purpose-Built Student Accommodation (PBSA), and Private Accommodations.

1. Private Accommodation: This segment is the dominant choice for students, capturing nearly 70% of the market share, including homestays, shared apartments, living with parents, and more. Shared apartments lead with 21.9% of total accommodations with 9% domestic students and 8% international students.

2. On-Campus Housing: Accommodating 50,000 students, hosting just 3.2% of the overall student population, on-campus student housing plays a significant role in fostering a spirit of community and opportunities to socialize.

3. Purpose-Built Student Accommodation (PBSA): Purpose-Built Student Accommodation (PBSA) is witnessing considerable growth, climbing from 5% of the student population in 2021 to 6.4% in 2024, which equates to around 100,000 beds. This sector is currently experiencing a growth rate of 18% in the period 2024-27, highlighting strong investment potential, as observed by CBRE.

4. Other Accommodations: The Build-to-Rent (BTR) sector is an emerging sector tapping into the student housing market, owing to high demand. Recent research suggests that approximately 20% of the beds in sought-after BTR developments are occupied by university students, underscoring a significant opportunity for future expansion in Australia’s student accommodation market.

Top Australian States for International Students

The rising demand for higher education in Australia is reflected in a significant 6.34% increase in international student enrollment from 2015 to 2023, reinforcing the country's reputation as a premier destination for quality education. Let’s identify the top states for international students in Australia.

#1 New South Wales (NSW)

As of May 2024, New South Wales (NSW) leads Australia in international student enrollments, with an impressive total of 311,111 students, marking a substantial 30% increase since 2015. This growth can be largely attributed to prestigious institutions, including the University of Sydney and the University of New South Wales, both recognized in the Top 300 QS World University Rankings.

#2 Victoria

Following closely behind NSW, Victoria stands out with 212,159 international student enrollments, reflecting a remarkable 37.5% increase since 2015, making it a preferred state to pursue higher education. The state's vibrant cities, particularly Melbourne, are popular for their esteemed educational institutions, including the University of Melbourne and Monash University.

#3 Queensland

Queensland is also a significant player, attracting 101,210 international students, which represents an impressive 52.1% increase since 2015. Institutions such as The University of Queensland and Griffith University are well-regarded for their academic excellence and research opportunities, making Queensland an attractive choice for students from around the world.

To uncover the top Australian states for international students beyond these leaders, be sure to explore Amber’s Australia Student Accommodation Annual Report (2024-25) for a comprehensive analysis and detailed insights.

An Overview of Homestays for Students in 2024

Student homestays are emerging as a popular accommodation option for international students in Australia. The Australian Homestay Network (AHN) provides key insights into pricing across various cities, reflecting local living costs and available amenities.

Homestay Pricing in Major Student Cities

• Melbourne and Sydney offer similar pricing structures, with costs ranging from A$350 to A$410 for both private and shared rooms.
• In Newcastle, students can expect comparable prices, going up to A$410 for private rooms.
• Perth stands out with slightly lower costs, where private rooms can be found for around A$385, while shared rooms start at A$320.
• Canberra offers competitive rates, starting at A$330 for shared rooms.
• Adelaide and Brisbane are among the more affordable options, with prices going up to A$370, making them appealing options for students on a budget.

Student Homestay Amenities

Homestay packages typically come with several essential amenities, enhancing student living experience:

• Internet Access: Crucial for academic research and maintaining connections with family and friends.
• Laundry Facilities: Convenient access for managing laundry without extra costs.
• Utilities: Generally included in the pricing, covering essential services like electricity and water, which simplifies budgeting.

A Comprehensive Analysis of Student Living Expenses

Understanding how students allocate their budgets for housing is crucial, particularly in the context of rising living costs and the ever-increasing demand for quality accommodation. To explore the in-depth analysis of rental trends in the Australian student accommodation market and debunk myths related to international students, you can head to “Australian Student Housing: Debunking Myths Related to International Students”.

Let’s take a deep dive into student living costs and the factors influencing them, offering a comprehensive view of the financial landscape for international students in Australia.

Economic Factors Influencing Student Living Costs

In recent years, the Australian Dollar (AUD) has experienced a notable depreciation against the currencies of countries with high student enrolments in Australia. This decline has rendered studying in Australia more cost-effective, influencing both tuition fees and living expenses. Consequently, this financial advantage has contributed to a notable increase in international student enrolments, as highlighted by Savills.

• Tuition and Living Costs: The depreciation of the AUD allows students to anticipate lower overall expenses when studying in Australia compared to other countries.
• Rising Housing Demand: Even with the financial benefits, the growing demand for housing has driven up living costs, especially in metropolitan areas. Reports indicate that housing rents have surged by 10-20%, according to the Economic Times.

Living Expenses in Australia by Cities

A profound understanding of the overall living expenses in different Australian cities is crucial for prospective students. By comparing the costs of living in various cities, students can opt for an area that aligns with their financial situation and lifestyle preferences, ensuring a more comfortable and manageable experience during their studies.

Understanding Student Accommodation Spending Patterns

A 2022 report from the Student Accommodation Council reveals that students residing in Purpose-Built Student Accommodations (PBSAs) incur monthly expenses that are comparable to those of the average Australian. The statistics illustrate the economic impact of students on local economies, particularly in Central Business Districts (CBDs) where PBSAs are predominantly situated.

• Monthly Spending: Students inhabiting PBSAs have an average monthly expenditure of approximately AUD 4,400, compared to AUD 4,600 for the average Australian (which includes family expenses).
• Student Demographics: Domestic students now constitute 26% of PBSA residents, closely aligning with the 27% of international students from China, reflecting a growing trend of diverse student populations choosing PBSAs.

Types of Student Accommodations & Average Monthly Costs

Australia's higher education system is renowned for its affordability and quality, attracting a growing number of international students. As demand increases, it's essential to grasp the intricacies of student living costs—especially accommodation pricing—to ensure a fulfilling educational experience that aligns with diverse financial needs and lifestyles.

CAGR of Top Source Countries for International Students in Australia

As Australia continues to be a preferred destination for international students, analyzing the compound annual growth rate (CAGR) from various source countries reveals significant insights into shifting trends in global education and Australia’s student accommodation market. This analysis highlights the evolving dynamics and the increasing diversity among international student populations in Australia from 2015 to 2023.

According to Amber’s Australia Student Accommodation Annual Report (2024-25), China continues to lead as the largest source of international students in Australia in 2023, with 166,276 students enrolled, but its growth rate is modest at 2.56%. India follows closely, with 125,474 students and a solid growth rate of 11.27%, reflecting a strong interest in Australian education in

The Road Ahead

Australia's international student landscape is evolving, driven by emerging markets like Nepal, Colombia, and the Philippines. This shift calls for universities to refine their recruitment strategies to attract a diverse student body, especially from regions showing increasing interest in Australian education.

Insights into student accommodation, state enrollment figures, and living expenses underscore the need for innovative housing solutions and flexible marketing approaches. As demand for quality education rises, institutions must highlight their strengths and forge new partnerships.

Ultimately, understanding the trends in the compound annual growth rate (CAGR) of source countries will be vital for Australian education providers to enhance competitiveness and adapt to the dynamic global mobility landscape.

For a comprehensive overview of the trends shaping the Australian student housing market, explore Amber’s Australia Student Accommodation Annual Report (2024-25)  below to discover the latest insights!