Australia is facing a political push from both major parties to limit the number of international students as a means to address skyrocketing housing prices, marking a significant shift from its previous stance of welcoming overseas students. This change comes amid a severe housing affordability crisis, with cities like Sydney becoming some of the least affordable globally. The country once promoted its international education sector as a major economic asset, with foreign students considered a crucial export comparable to industries like mining. The current debate is fueled by a surge in international student numbers post-pandemic, which coincided with a housing crisis, leading politicians to target these non-voting residents as a quick solution. Critics argue that restricting student numbers is a short-term fix and emphasize the broader contributions of international students to Australia's economy and society, suggesting a need for more comprehensive policy reform instead of blanket restrictions.

Australia's major political parties are advocating for significant reductions in international student numbers to help curb rising housing prices, a top voter concern ahead of upcoming elections.

The country has historically viewed international education as a key economic driver, with foreign students contributing significantly to university revenues through higher fees compared to domestic students.

A post-pandemic surge in international students has coincided with a housing affordability crisis, with home values rising sharply since 2020, making cities like Sydney extremely unaffordable.

Politicians have targeted international students as an expedient solution to the housing crisis, despite arguments that they primarily occupy housing types that do not directly compete with first-time home buyers.

The government previously attempted to legislate caps on international student numbers but shifted to increasing visa fees and slowing visa processing as alternative measures.

International students are seen as a vital part of Australia's social and economic fabric, with many contributing to the workforce and returning to their home countries with skills beneficial to both nations.

Critics of the proposed student caps suggest that a more nuanced and comprehensive migration policy is needed, rather than short-term fixes, to address the underlying issues of housing affordability and immigration.