Housing Crisis Deepens in Australia, International Students and Immigrants Most Affected
September 2, Sydney – The housing crisis in Australia has worsened due to a sharp increase in rental prices and limited housing availability. In major cities such as Sydney, Melbourne, Brisbane, and Adelaide, finding affordable rooms or apartments has become increasingly difficult, placing significant financial pressure on international students, new immigrants, and low- to middle-income families. According to the latest analysis by the Commonwealth Bank in September 2026, the national rental vacancy rate has fallen to 1.8 percent, down from an average of 2.8 percent during 2015–2019. Rental prices for advertised properties in eight key cities have risen by 5.7 percent annually, reflecting heightened competition and economic strain among renters.
The surge in rent has hit international students hardest. A 2026 study by global housing consultancy CBRE revealed a stark nationwide gap of approximately 185,000 between potential student housing demand and available rooms. In Sydney, weekly rents for student-targeted accommodations have reached AUD 700 to 900. The high rental costs force many students to share rooms, live far from university campuses, or dedicate a substantial portion of their income to housing expenses.
Another affected group is new immigrants and refugees. According to an ABC News report, Je Biayi, a refugee from the Democratic Republic of Congo, spent six months searching for accommodation in Adelaide. After inspecting more than 100 properties and facing multiple rejections, he finally secured a home in northern Adelaide. As of June, Adelaide’s vacancy rate was a low 0.4 percent, with average weekly rents reaching AUD 650. Experts warn that slow new construction and rising costs will pose further challenges in the future.
CBRE forecasts that rising construction costs and cancellations of private projects may cause average apartment rents to increase by up to 26 percent over the next five years. Around 40 percent of two-bedroom apartments could command weekly rents exceeding AUD 1,000. To combat this crisis, the federal government has set a target to build 1.2 million new homes over the next five years. However, construction industry representatives have expressed concerns that rising costs, skilled labor shortages, and delays in project approvals will make achieving this goal difficult.
The national housing crisis is directly impacting the Nepalese student and immigrant communities residing in Australia. Nepalese newcomers moving to new cities for education or work face significant difficulties managing upfront payments, bond deposits, and regular rent. Stakeholders recommend prospective renters ensure thorough property inspections, formal written agreements, and official bond registrations to avoid risky situations during their housing search.
