The Reserve Bank of Australia (RBA) has announced that it would not change the cash rate again until after the election, but experts have said the rental crisis for students is unlikely to change this year.
The RBA held their second annual Monetary Policy Board Meeting earlier this week after the cash rate was lowered for the first time in nearly five years from 4.35 per cent to 4.1 per cent in February.
The big four banks have predicted further cuts in the coming months, but local real-estate agent Craig Hyde said that though these cuts will provide relief for those with mortgages, student renters will not see the same impacts.
“Changing the rates won’t massively change the rental market, because the bigger problem is the amount of people looking for properties, so investors can make the rent higher and still find tenants” Mr Hyde said.
“Quite frankly, any university student, unless they have a guarantor or someone who can go on the lease with them, they haven’t got a chance against other renters.
“And even if they get a rental, a lot of the students will have to take up second and third jobs just to make do.”
Since the cash rate started rising in 2022 in an effort by the RBA to curb inflation, Wollongong has seen a 40 per cent increase in the median rent for all properties, from $500 to $700 per week.
The median salary of a full-time university student in Australia is between $16,000 and $17,000. University students on this salary paying the current median rental costs for apartments in the 2500 postcode, which includes major suburbs Wollongong, North Wollongong, Keiraville, and Gwynneville, are left with under $100 per week.
A report by Finder on Student Finance Statistics also found that 43 per cent of university students struggle to pay rent each week.
But even students with higher salaries are still having trouble finding a home.
University of Wollongong student and full-time worker Rowan Keyes, 21, said that despite his reliable income and references, he has struggled to find an apartment in Wollongong.
“I have been looking to move to Wollongong for the last four months to be closer to the University and work, but I keep getting knocked back,” Mr Keyes said.
“I have a full-time job, references, and a guarantor on my applications, but I can’t compete with older workers who can offer above the asking price for weekly rent.”
Mr Hyde said the solution is in UOW’s hands.
“The universities should build accommodation to house international students, and make it a condition of intake that they’re housed on campus to free up homes in the suburbs,” he said.
“Until then, the housing market is only going to get worse.”
