“It feels impossible to pay rent and keep up with a degree!”
Education is dropping lower on the to-do list as cost-of-living pressures pushed up university dropout rates.
The cost-of-living-crisis has pushed some students to choose between two basic needs: education or a roof over their head.
Ella Holland (22) experienced the struggle firsthand. In the middle of her degree in Exercise Physiology at Curtin University she was forced to choose between her education or shelter.
She chose the latter.
Ella lived in a boarding house while completing her schooling at Perth’s Presbyterian Ladies College. After graduation, she began searching for rentals with her best friend.
Skyrocketing rent
When they first moved in to the 2-by-1 in Claremont, the rent was $525 per week. Two years later, it had risen to $725 per week.
Ella said maintaining a degree while trying to earn enough to make rent every week became overwhelming and she questioned whether staying at university was a viable option.
“I think it was even harder as my parents don’t live in Perth. I really had nowhere to go.”
“We did apply for other houses that were more affordable and further away, but our offer was always beaten.”
Ella and her roommate both worked in Claremont and didn’t want the additional cost of travel. However, as the rent rose, they were forced to look for alternative options.
“I never would have imagined I would have to give up on my education, just to afford living,” she said.
“My education just didn’t seem as important anymore.”
Ella is currently working full time as a dental receptionist, and has begun paying off HECS debt accumulated during unfinished studies.
“I definitely will go back to university eventually; I just need some time to get back on my feet,” she said.
Ella’s isn’t alone, many students are dealing with the same harsh reality.
Near-zero vacancy
Perth has one of the lowest rental vacancies in the nation. REIWA reported a rate of 0.7 per cent in January 2024.
University students stereotypically fulfil casual or part time jobs where rent can quickly topple wages.
The growing cost-of-living crisis, is reflected in the drop in university enrolment, placing many students in an unstable situation.
Students are finding it more and more difficult to pay for both housing and education due to rising prices of rent.
Real Estate agent Holly Barry believes government policies should be implemented to benefit university students battling the rental market.
“It’s hard for university students as they don’t have any rental history.
“They also don’t necessarily have a stable income, so they won’t be accepted for a property compared to a family with a bigger income.”
Changes to the Residential Tenancies Act were passed by the WA government in April.
The updated legislation bans agents from auctioning rents, however the new laws do not prevent prospective renters to offer more than the listed price.
Meaningful political incentives needed
Recently, Western Australia had a legislation update against gazumping which is essentially when a seller can go back on his agreement and accept a higher offer from another buying which effectively kicks out the original buyer from the deal.
Still, housing prices continue to skyrocket.
“It’s all [down to] supply and demand. We have a rise in immigration and less houses are being built so the demand has gone up,” Hamish explained.
“The rich are buying houses as the land value is increasing, and just holding onto it.
“Whereas in a steadier market there will be people that want it for an investment and then rent it to the underbidders.”
The Government currently allows first home grants to build houses as they want to help support the building industry but as the prices of housing have risen so has the cost for building.
“There’s a number of unfinished houses […] I would get the government incentives to change, there needs to be a government incentive to complete builds, not start builds because they don’t get finished.”
This serious situation emphasises how quickly we need practical solutions to the cost of housing problem.
“Something needs to be changed politically for the supply and demand issue to change,” said Hamish.
“A good idea would be more student housing, around the area of the university’s and make it an affordable price and make rent assistance easily accessible,” Holly added.
The rise in living costs has driven numerous students to the edge, where they are forced to give up on their degrees and postpone their dreams, all just to keep a roof over their head.
