Global Demand for International Education continues to increase despite the Housing Crisis

International education demand is on track and rising even after the surge of the global accommodation crisis globally in 2023. According to International Education News, the demand for international education is driven by the increase in cross-border capital investment and the growth of middle-class demographics. However, this increase in demand has caused a gap between the available housing supply and the growing student population, leading to a housing shortage. Furthermore, COVID-19 has significantly impacted the global education sector and student mobility. Student housing construction has been hindered during the pandemic, resulting in a lack of housing for international students. However, the global international education sector is on track despite these challenges. Student enrollment worldwide has increased significantly as students continue demonstrating a strong interest in studying abroad.

Rise in the International Students' Enrollment 

According to the OECD, there will be approximately 8 million international students studying by 2025, a rise from 5 million in 2019. The growing middle class is driving up international education demand. China and India have a significant middle-class population and are the primary sources of international education.

Source: Massification of Higher Education

According to International Education News, in 2000, 1.6 million international students were studying abroad. In 2022, there were 6.4 million students who crossed the border to study, an increase of 4 times from 2000. In 2022, 45% of these students studied in just five countries.

Source: Institute of International Education

It is logical to believe that demand for student accommodation will rise as more universities begin to accept international students' enrollment. In recent years, student housing has been one of commercial real estate's most valued asset groups. As per student accommodation news, there is a surplus of demand for student housing, which exceeds the supply and is one of the reasons for its high cost.

Ireland, Australia, the United Kingdom, and the Netherlands are among the countries where demand for student housing significantly exceeds availability due to increasing enrollment.

1. Australia's education sector is the second largest industry, contributing 13% of its return. According to the Institute of Public Affairs (IPA), the country is experiencing a significant rise in international students. 

• Currently, Australia has approximately 1,550,000 university students, including local and international students. According to the Australian Bureau of Statistics (ABS), from January to April 2023, the country hosted 590,566 international students enrolled in 648,700 courses.
• Approximately 771,012 new international students are expected to settle in Australia between the fiscal years ending 2023 and 2028.
• The combined enrollment of Chinese and Indian students alone contributes to nearly 40% of Australia's international student population.

Moreover, with the increasing enrollment of international students, there is a sudden demand for affordable, high-quality student housing. According to student accommodation news, the enrollment of international students has increased rental expenses by 10 to 20% in significant urban areas, increasing the persistent housing crisis.

Source: 2023 Australian Trade and Investment Commission

2. Similarly, the UK is gaining popularity as an international education hub globally. Millions of hopeful students are choosing to complete their higher education in one of the prestigious UK universities.

•  The Higher Education Statistics Agency (HESA) states that in 2021/22, there were 679,970 international students enrolled for degrees in the UK.

Source: The Higher Education Statistics Agency

• With the increased enrollment of international students, accommodation demand has doubled. As per the PBSA news report, a whopping 4.5 million beds shortage is predicted by 2025 due to rising university enrollments. 
• Universities and Colleges Admissions Service (UCAS) predicts a 30% rise in University enrollment by 2030. According to UCAS, there are 2.2 million full-time students in the UK today, which equates to about three students for every PBSA bed.

According to Amber, students struggle to find accommodation in many cities across the UK. One student accommodation news stated that the students queued overnight in Durham for AY22-23, hoping to secure next year’s housing. Due to the dire circumstances in the UK, some universities have suspended intake. Students are advised not to apply for courses due to insufficient housing.

3. The Netherlands is among the most popular overseas student study destinations.

• There are now 115,000 international students in the Netherlands, more than 3.5 times the amount in 2005. 
• According to the Dutch News report, in the academic year 2022/23, the number of international students enrolled in the Netherlands increased by 7.3%. This significant increase in international enrolment led to accommodation shortages. 

To handle the situation, members of parliament advised universities to cease hostile international recruitment this year. The government noted that such circumstances could harm educational quality. This accommodation issue substantially influences students' living conditions and the reputation of these destinations as appealing to study abroad.

4. Ireland has recently emerged as an appealing destination for international students seeking higher education. Ireland provides a one-of-a-kind combination of academic achievement and a great quality of life.

• In the academic year 2022, 30,400 students worldwide enrolled at Irish universities, representing an incredible 20% increase. 
• According to the Irish Council of International Students (ICOS) report, unaffordable housing and a lack of accommodation have become major issues in Ireland, affecting many international students globally. 
• Surveys indicate that more than one in ten (14%) students had been victims of an accommodation scam in Ireland. 

Steps Taken to Overcome Student Accommodation Crisis

These countries' governments and universities are trying to discover solutions to the housing crisis. However, the problem persists, and its consequences for student mobility and the reputation of the afflicted countries are immense. Although governments and universities in countries such as the Netherlands and Ireland strive to reduce the student housing supply shortage, many of these solutions will take time to implement.

• For instance, Australia's New South Wales (NSW) Government allocated $20 million to provide temporary housing and increased assistance for international students facing accommodation challenges. These initiatives aim to protect vulnerable students and maintain the state's reputation as a global study destination.
• The Irish government is now taking steps to help students locate affordable accommodation options. In 2023, the Irish government plans to invest up to €41 million in new housing and create 405 additional student housing beds at Dublin City University (DCU).
• Some universities offer financial incentives to students to switch from on-campus living to alternative accommodation. This approach helps alleviate overcrowding and allows students to find affordable housing options. 
• The University of Cincinnati offered a £1,943 financial incentive to entice students to move off campus or to private housing.
• In the UK, Nottingham City Council and the two institutions have collaborated to create a Student Living Strategy. The initiative aims to increase the supply of cheap and safe homes while fostering community in the surrounding area.
• Some universities have invested in on-campus housing, responding to the growing demand for international graduate students.

These examples demonstrate that educators and other stakeholders are adopting some measures to increase the inventory of available student beds. These efforts ensure students can access suitable accommodations and easily adapt their choice for International Education.
Student accommodation booking websites can be important in assisting students with international education demands.  By aggregating various options in one place, the platform improves the chances of finding suitable housing even in areas experiencing shortages. Many student accommodation booking platforms encourage students to book their accommodations in advance. On Amber’s platform, we’re seeing an increase in enquiries for advanced booking of studios and ensuites in top international student destinations well ahead of their semester intakes. To date, there are 18089 bookings for the UK region for 2023. This proactive approach helps secure preferred apartments and rooms before they are fully occupied. Amber provides a book now pay later option, which enables students to secure affordable housing options and reduces the risk of last-minute struggles to find accommodations. 
Booking through a reputable student accommodation platform provides an added layer of safety and security. Credible platforms thoroughly access their housing listings and work to prevent fraudulent advertisements and fake listings. This helps students fall victim to housing scams, ensuring a more secure and comfortable living environment.

In summary, International student accommodation is set to take off aggressively as more and more international students demand it. Institutions and accommodation providers must develop sustainable and cost-effective solutions to address the student housing crisis. This effort makes these study destinations appealing, and international students worldwide have an amazing study abroad experience.