Kathmandu, October 2
Australia’s rental housing crisis is deepening as rents continue to rise while the availability of homes remains limited, putting growing financial pressure on international students, new migrants and low- and middle-income households.
A September 2026 analysis by Commonwealth Bank found that Australia’s national rental vacancy rate had fallen to around 1.8 percent, compared with an average of about 2.8 percent between 2015 and 2019. Advertised rents across the eight capital cities were increasing at an annual rate of 5.7 percent.
The shortage is particularly visible in major cities such as Sydney, Melbourne, Brisbane and Adelaide, where tenants face intense competition for relatively affordable accommodation.
International students are among those facing significant pressure. A 2026 analysis by global property consultancy CBRE estimates potential unmet demand for around 185,000 purpose-built student accommodation rooms across Australia. Even if all planned projects proceed, the country is expected to add around 34,000 student accommodation beds between 2026 and 2029.
The shortage is particularly pronounced in Sydney and Melbourne. CBRE estimates unmet demand for about 25,000 student accommodation beds in central and inner-west Sydney and around 10,000 in Melbourne City and inner-north Melbourne.
Student accommodation rents in Sydney currently range from around A$700 to A$900 per week, according to CBRE. The corresponding range is A$550 to A$650 in Melbourne and A$500 to A$600 in Brisbane.
The high cost of accommodation has forced some students to share rooms, live farther from their universities or allocate a substantial portion of their income to rent.
The situation is also difficult for newly arrived migrants and refugees.
ABC News recently reported the case of Jay Biayi, a refugee from the Democratic Republic of Congo, who spent almost six months looking for a rental property in Adelaide. He attended more than 100 inspections and had his applications rejected before eventually securing a home in Adelaide’s northern suburbs.
Adelaide’s rental vacancy rate stood at 0.4 percent in June, while the median weekly house rent had reached A$650, according to figures cited by ABC News from Domain.
The shortage is expected to remain a challenge as construction costs rise and the supply of new apartments remains constrained.
Recent CBRE projections indicate that average apartment rents could rise by as much as 26 percent over the next five years if construction costs and cancellations of private projects continue to constrain supply. The analysis also projects that 40 percent of two-bedroom apartments could have rents above A$1,000 per week.
The Australian government has set a target of building 1.2 million new, well-located homes over five years from July 2024 under the National Housing Accord. The government has also introduced measures intended to address planning and infrastructure constraints and increase housing construction.
However, the housing shortage continues to pose challenges for renters, particularly in major cities where population growth and demand for accommodation remain strong.
Australia’s housing pressures are also being felt by the country’s large Nepali student and migrant community. Nepalis arriving in Australia for study or employment often have to manage rental payments, upfront bonds and other housing costs while competing in a tight market.
For those searching for accommodation, community representatives and housing advocates advise prospective tenants to inspect properties before making payments, use written rental agreements and ensure that bond payments are officially registered through the relevant state or territory system.
With rents continuing to rise and vacancy rates remaining low, access to affordable accommodation is likely to remain a major challenge for international students, migrants and other renters across Australia.
