- This is close to how much the average Australian spend monthly, including the cost of children and independents
- Domestic students make up 26% of all PBSA residents, international Chinese students make up 27%
- There are 200 PBSA developments nationally, housing around 76,000 students
New data has found that students who live in purpose-built student accommodation (PBSA) spend close to how much the average Australian spends per month.
The new report by the Student Accommodation, the first-of-its-kind, also revealed that more Australian students are living in PBSA than ever before.
Notably domestic students make up 26% of all PBSA residents, just under the same number as from China (27%).
The data, which was produced in partnership with Accenture, revealed that the average PBSA student spends $4,400 per month, excluding tuition costs. By comparison, the average Australian spends $4,600 per month, a figure which includes any children and dependents.
Torie Brown, the Student Accommodation Council’s Executive Director, said the report showcases the vital contribution the student accommodation sector makes to the economy.
“This report shows that students living in purpose-built student accommodation (PBSA) are good spenders, and importantly, they’re spending it in our recovering CBDs where PBSA sites are located,” Ms Brown said.
“While an office worker may only buy a sandwich and a cup of coffee when they are in the office three days a week, residents in PBSA are spending the same amount on food, beverage and recreation as the average Australian – and they are doing so 24 hours a day entirely in our CBDs.”
Torie Brown, Student Accommodation Council Executive Director
The report was released today at the Property Council’s What’s Next for Student Accommodation event in Sydney, and also highlights the vital role PBSA plays in accommodating Australian students.
“There’s clearly been a shift amongst domestic students who are now turning to PBSA because of extremely tight residential rental markets, and the superior offering of PBSA that is customised to their needs,” Ms Brown said.
“What’s clear in this report is the vital role PBSA plays in releasing pressure on the housing market, because students living in these buildings aren’t competing with mums and dads for private rentals.
“Without PBSA, we would have tens of thousands more people hunting for rentals in an already tight rental market, which would drive prices to even more unaffordable levels,” she said.
The report notes that there are 200 PBSA developments nationally, housing around 76,000 students. This does not include university colleges.
It also confirms that education is Australia’s fourth largest export – behind iron ore, coal and gas – and was valued at $40 billion before the pandemic.
“The last thing we want is our housing supply or rental market crisis to become a handbrake on our education sector because we have nowhere for prospective students to live,” Ms Brown continued.
“The report shows PBSA buildings are already at capacity in most Australian cities, and we are yet to see all our international students return.
“Right now, governments need to be looking at how they can remove the barriers to investment in this asset class – like cutting foreign investor taxes – to ensure we have enough beds to service growing demand including from domestic students and avoid placing greater pressure on an already-tight rental market.
“International investors are the main providers of capital for PBSA developments, and this report shines a light on the millions of dollars in fees and taxes those investors face, before investing here.
“It’s important that we have a strong pipeline of new PBSA assets in Australia to ensure our vital international education sector can continue to grow, and our CBDs are given a leg-up in their recovery.
“PBSA-based students are a vital economic engine for our CBDs, making up the shortfall in spending by office workers who are now spending more time working from home or in hybrid roles,” she said.
