RBA finds international students not a key driver of rent or inflation increases
The Reserve Bank of Australia (RBA) has found that the rapid post-pandemic growth in international student numbers has not been a major contributor to rising rents or inflation. Despite widespread public debate, the RBA’s latest analysis concludes that other factors such as broader housing shortages and economic pressures are more significant drivers of recent cost increases.
RBA research dispels common misconceptions
According to the RBA’s July 2025 Bulletin, while international student arrivals have rebounded strongly since pandemic restrictions eased, their overall impact on the housing market and inflation rates remains limited. The report highlights that most international students tend to reside in shared accommodation or purpose-built student housing, which has a relatively small effect on the wider rental market.
Broader factors behind rising rents and inflation
The RBA points to persistent housing undersupply, population growth, construction delays, and higher building costs as the primary reasons for increased rents and inflationary pressures. These structural challenges are affecting all segments of the housing market, not just those associated with international students.
Policy implications and sector response
The findings are expected to inform ongoing policy discussions around housing, migration, and education. Universities Australia and sector representatives have welcomed the RBA’s analysis, noting that international students remain vital to the country’s education sector and broader economy.
International students continue to play a positive economic role
The RBA’s research reinforces the importance of international students as contributors to Australia’s economic and cultural life, without placing undue pressure on housing affordability or inflation. Policymakers and education leaders are being urged to focus on systemic solutions to housing and cost-of-living challenges.
