Student housing population growth has reached record numbers.
Melbourne has seen a record spike in student housing population growth and a rebound in aged care numbers to pre-pandemic levels, new research shows.
The latest findings from analysis by KPMG urban economist Terry Rawnsley show an extra 111,000 people were added to the city’s population in the past year to reach a record 5.147m figure.
But despite common misbeliefs, increased migration levels did not completely inflate the private housing and rental markets.
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Mr Rawnsley revealed that 26,000 international migrants were accommodated by non-private dwellings – including student, worker and aged care housing – in the 12 months to June 30.
He added that record migration levels across Melbourne were largely made possible by spare beds in student accommodation off the back of the pandemic.
KPMG urban economist Terry Rawnsley.
“While we have seen strong net international migration, the notion that it is all being accommodated in the private housing market is a bit of a misconception,” the economist said.
Behind Sydney and the ACT, Melbourne recorded the third highest population percentage growth in non-private dwellings nationwide, up a whopping 24.9 per cent from 2022.
And it wasn’t just offshore students driving the spike.
Mr Rawnsley said while student accommodation played a major role in the growth of the non-private dwelling sector, there was also a notable rebound in people making the move to aged care facilities.
Aged care facilities are also driving the non-private dwelling population growth.
Melbourne has had an influx of international migrants in the past year. Picture: Getty Images
“The increases in international student and aged care populations are largely a release of bottle necks caused by Covid,” he added.
“We are seeing many people moving into existing non-private dwellings that had been under-utilised during the pandemic.”
The findings show Australians aged between 20-29 years made up the majority of the non-private dwelling sector across the nation, followed by those aged from 85-89 years.
It also revealed that Australia’s migration levels reached 375,000 in the past 12 months – a shocking 50 per cent higher than the 2018-19 financial year.
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