Student Housing Demand Drives Rent Up by 8% in Canada and Australia
Student Housing

In Australia and Canada, the average rent for purpose-built student housing jumped by almost 8% last year, in part due to the demand from international students.

According to a recent analysis by BONARD, the average rent in the UK increased by 4.4% to £1017 per month for a single studio and by 3.1% throughout the rest of Europe.

Analysts said that rising energy prices and inflation are to blame for rent rises, but high demand has kept occupancy rates high despite the economy’s slump.

In nations like the UK, Ireland, Canada, Australia, and the Netherlands, students had trouble finding lodging, and some universities advised international students not to travel until they had a place to stay.

With the US excluded, there were an average of 50,000 new beds delivered annually between 2018 and 2021, with a rise to 75,000 in 2022. Only roughly 38,000 beds are anticipated to be provided in 2024, despite the fact that 77,000 beds are planned for 2023.

Most projects are now under construction in London and Paris, whereas Porto, Barcelona, and Seville have the largest pipelines.

Developers have difficulty because of some markets’ onerous planning regulations and high construction prices, according to Miller. Over the upcoming academic years, he predicted that the discrepancy between supply and demand would worsen.

High occupancy rates are anticipated, and China’s prohibition on online study abroad is likely to increase demand.

The economic slowdown has taken the position of the market uncertainty that the pandemic had caused, according to BONARD, who also anticipated that this uncertainty might subside in the first quarter of 2023.

New trends in student housing have been noticed by analysts, including the provision of amenities like gyms, game rooms, and study areas. In addition, recently constructed student housing has a tendency to incorporate outdoor spaces and bike storage, while computer rooms and libraries have been replaced with high-speed internet.

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