International students 'stuck' in housing crisis in many countries

Housing markets in many countries are facing a situation of "supply not meeting demand" due to the post-pandemic explosion in the number of international students.

By 2022, major study abroad markets have committed to investing more than $33.5 billion in purpose-built student accommodation, including the UK ($7 billion), the US ($6 billion) and Australia ($3 billion). However, a recent report found that 53% of international students globally have had to resort to private rental accommodation due to a shortage of dormitories and student accommodation, according to ICEF Monitor .

Canada: Housing price storm and fraud risks

According to CBS , in the context of international students having to rush to find housing in Canada, many people have faced the risk of being scammed. The tricks of the subjects are quite diverse, such as requiring a deposit to view the house, forcing a non-refundable registration fee of up to 200 USD (4.8 million VND) but in fact there is no more room, renting to many people at the same time or providing housing at "sky-high" prices but the quality is worse than advertised.

In response to the situation, the Canadian government recommends that international students who are victims of fraud contact the Canadian Anti-Fraud Centre or local police to report the incident and receive support. To ease the pressure on the housing market, Sean Fraser, Canada's Minister of Housing, Infrastructure and Communities, also proposed in August to limit the number of international students coming to the country. It is estimated that by 2026, Canada will have a shortage of 120,000 housing spaces and the country is expected to welcome 900,000 international students by the end of this year.

On the other hand, even if they start looking for accommodation early, international students will still find it difficult to "settle down" before leaving to study abroad, because current statistics show that the average time to find accommodation lasts up to 3 months. The average cost is 600 USD/month (14.6 million VND), even up to 700 USD (17 million VND) even if they have to share a room with many people in a 1-2 bedroom apartment.

It is estimated that by 2026, Canada will have a shortage of 120,000 accommodation places and the country is expected to welcome 900,000 international students by the end of this year.

Furthermore, in major cities, the price of a one-bedroom apartment has increased by 27% compared to the same period last year, at 2,095 USD/month (51 million VND). Not to mention, the procedure for renting a house privately or through an agent is quite cumbersome because the regulation requires international students to have a sponsor, and while waiting for the procedure to be completed, the accommodation may be rented by someone else.

Australia: 70% of new accommodation is also provided for international students

International students are expected to consume 55% of Australia’s new supply of accommodation by 2023. This is worrying, as 2022 data shows 70% of new accommodation will be provided to international students, while Australians continue to struggle to find accommodation due to rising inflation, interest rates and rents.

Housing supply in Australia has also declined significantly in recent years, and this trend is expected to continue in the coming time. It is estimated that there will be only 127,500 houses left by 2025, compared to 200,000 houses before the pandemic. And only about 4,979 new houses will be put into use in 2023, according to The PIE News .

Australian rents are at record highs and show no signs of cooling down

Not to mention, the cost of living, especially rent in Australia, has increased by 10-20% and officially reached 595 USD/week (14 million VND) in July 2023, according to ABC News . In addition, only 10% of international students in Australia have a place in school dormitories, the rest have to rent outside. This puts a lot of pressure on the housing market, putting the country at risk of a shortage of 252,800 accommodation places by 2028.

UK: 91% of international students worry about rising living costs

Similar to Australia and Canada, the UK is estimated to have a shortage of 620,000 student accommodation places by 2026. According to the Times Higher Education , nearly 75% of student accommodation at some of the UK's top universities is full for 2023-2024. The Savills report also shows that the student accommodation fund has about 91,351 places left, completely unable to meet the needs of the 344,065 students studying at universities in the capital London.

Many are forced to rent accommodation far from campus, with Bristol University students forced to rent 31 miles (50 km) away in Newport, and Manchester University students forced to live 35 miles (56 km) away in Liverpool, according to STV News . Long-distance public transport is expensive, and students sometimes miss classes on time. This situation has forced many international students to put their studies on hold or consider alternative plans.

International students studying in the UK face difficulties because of vacant housing far from school.

UNIVERSITY OF SOUTHAMPTON

Student housing rents are also up 30% on average from 2022, at around £592 a month (VND 17.3 million). In London, the cost is up to around £840 (VND 24.6 million). Rents have increased many times faster than inflation, putting a lot of pressure on students to pay rent, because loans cannot meet the demand. Therefore, private landlords tend to prioritize working people, or short-term rentals rather than renting to students.

Faced with this situation, UK universities are rushing to increase the number of halls of residence, but are struggling with budgets and resources. Some temporary measures include providing financial support for housing for students who meet the requirements, converting dormitories into twin rooms, providing short-term rental options, etc. However, despite their efforts, universities can only partially improve the provision of accommodation for students, rather than providing a truly residential experience.

Europe: Housing shortage is a common problem

Many other European countries are also struggling with housing shortages. For example, the Netherlands has just announced a national action plan to expand the supply of student housing, by 60,000 new places by 2030, to address the shortage. In 2022, the Netherlands is short 27,000 student housing units, and this number could increase to 45,000 by 2030.

International students in the Netherlands are required to have accommodation to keep their residence permit.

Previously, the Amsterdam City government (Netherlands) had to call on landlords with vacant rooms to prioritize renting to students due to limited supply. At the same time, the city is considering limiting the growth rate of international students to solve the above situation. The leading University of Amsterdam in the Netherlands also advised students not to come to study here unless they have found suitable accommodation.

Accommodation is particularly important for non-EU international students in the Netherlands, as regulations require students to register their accommodation with the municipality in order to keep their residence permit. And the fact that many Dutch universities do not have dormitories means that they cannot provide housing for all international students.

In Ireland, a shortage of student housing has prompted the government to step in with support packages to build new supply. International students in France are moving to the suburbs instead of competing for small but expensive apartments in the city. Specifically, farmhouses will be renovated to accommodate up to six students, with rents 20-30% cheaper than in towns or big cities.

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