International students and migrants have increased dramatically in recent years, especially in Australia. The capital cities of Australia have experienced the highest annual rental increase on record as a result of the significant shortage in rental listings caused by this influx.

Why is this happening?

The reasons behind this surge in overseas migrants and international students are multifaceted and complex. This trend has been influenced by a number of things, including Australia’s reputation as a prosperous and secure country, its welcoming multicultural society, mismatch between the demand and supply and its well-regarded educational system. Additionally, the employment opportunities Australia provides in a variety of industries, including healthcare, construction, and IT, attracts a lot of foreign students and immigrants.

The Consequences:

However, this influx of people has led to a scarcity of rental properties, particularly in the major urban centres of Sydney and Melbourne. Sydney’s unit rents increased 5.8% for the rolling quarter and 19.1% for the year to April. Unit rents in Melbourne increased 5.0% over the past three months and 15.2% annually. Renters are in intense competition with one another because there is a shortage of housing, and many are forced to pay exorbitant rents in order to find a place to live. This rent increase is the highest on record, with some cities experiencing increases of over 10% in just one year.
The present rental issue facing the country is not just caused by a scarcity of rental units. For instance, a large demand for rental houses has resulted from the difficulty many individuals currently have in acquiring a property owing to rigorous banking requirements. The problem has also gotten worse since many developers have prioritised building opulent flats above cheap homes.
The government has implemented regulations that restrict tenancy fees and enhance financing for public housing in order to alleviate this rental problem. To improve the situation, more must be done, including expanding the supply of affordable housing and creating regulations that incentivize builders to construct additional rental properties.
Conclusion:

The issue at hand has received some attention from the government but more needs to be done to guarantee that renters can afford to live in Australia’s major urban centres.