Why is Student Accommodation Abroad So Expensive?

Finding affordable accommodation is one of the aspects that students struggle with when they move abroad to study. These high accommodation costs directly impact the student’s capacity to pay for school and their quality of life while studying. 

Several factors contribute to these high accommodation costs, including the limited availability of student housing, the strategic location of most universities in high-demand urban areas, and the comprehensive amenities often provided by these accommodations. 

On top of that, there are also outside factors like the ever-changing exchange rates and inflation that could make financial planning for international students even more difficult.

In this guide, we will explore the factors that increase the cost of student accommodation abroad and provide tips on managing student accommodation expenses. 

Let’s get started. 

Student accommodation for international students

When choosing accommodation abroad, you must consider a few factors such as location, budget, security, amenities, and its types.  

International students can choose from two main types of accommodations after moving abroad.  

1. On-campus accommodation
2. Off-campus accommodation

Mostly, first-year students choose on-campus accommodations. Options in this category include university dorms and residence halls, which are usually located near the campus premises. They are an excellent choice for first-year international students as they provide the necessary safety and convenience to help them seamlessly settle into campus life. 

These on-campus accommodations cost between $800 to $1,500 (INR 67,765 to INR (1,27,060) per month, which must be paid during the application process. Upon admission, you’ll be granted the living space.

When it comes to off-campus housing, the prices can range between $500 and $2,500 (INR 42,353 and INR 2,11,766) per month. The pricing for off-campus accommodation depends on the number of roommates, apartment size and location. Expect this to be slightly more expensive than on-campus options.

The costs for both on-campus and off-campus accommodation also depend on the city where the university is located. 

In Canada, cities like Toronto and Vancouver are among the most expensive cities for student accommodation. The average annual cost for on-campus housing in Toronto can cost $CA16,904 (INR 1,017,883) per year. However, off-campus accommodation can be very high. 

In the UK, the Halls of Residence are much cheaper, costing between £280 to £720 (INR 30,194 to INR 77,641) a month. Meanwhile, off-campus accommodation like a private flat, will cost you anywhere between £854 to £1000(INR 92,112 to INR 1,07,860).

Australia also has higher living costs for international students, especially in cities like Sydney and Melbourne, where off-campus rents can range between AUD 1,000 and 2,500 (INR 54,601 and 1,36,503) per month and are shared between 3-4 individuals.

Dorms are cheaper but limited, so most students either stay in apartments with roommates or in homestays.

Even Switzerland and the Netherlands have really expensive student housing in Europe. For example, off-campus housing in Zurich or Amsterdam will cost a student from €600 to €1,500 (INR 53,574 to INR 1,33,936) a month. 

So, we can see that the cost of accommodations differs from country to country. So, in essence, international students need to do their research and plan a little better to find appropriate places to live that are a good compromise between cost, accessibility, and comfort.

Also Read: Study Abroad Guide for Indian Students 2025

Reasons why student accommodations are expensive

There are many reasons why student accommodations are expensive. The reasons can range from accommodation location and various amenities involved to your duration of stay. Sometimes, the accommodations can be expensive due to increased market demands. 

Next, we have listed some common reasons below:

1. Location

Student accommodations near the university, the city centers, and public transportation hubs are usually more expensive due to the high demand for the convenience they offer. These locations are highly desirable because they provide easy access to facilities like bookstores, restaurants, and gyms. 

2. High market demand and low supply

The demand for student houses often surpasses the available supply, particularly in cities with many international students. This imbalance causes prices to skyrocket because of a surge in students looking for a place to live.

3. Maintenance facilities

Many student accommodations include comprehensive maintenance services, covering everything from repairs to regular cleaning and upkeep of common areas. Although these services make their career life much more convenient and comfortable, they add to the high cost of rent. All of these costs are built into the rent by the landlord to guarantee that the property will be in good shape at the end of the academic year.

4. Amenities and perks

Many new student apartments have high-speed internet, a gym, study rooms, community living rooms, and pools. All these amenities make a student’s life much more convenient, but of course, they come at a price, which is evident from the high rent costs.

5. Furnishing

Some of the student housing is furnished, so there is no need to buy furniture. But this facility comes at a price, the price of the furniture being included in the rent, so furnished apartments cost more than unfurnished ones. Even the kind and style of furniture can make a difference in the price.

6. 24/7 security 

Safety is the first concern for students and their families, even more so for those living in a foreign country. Most student housing has 24-hour security, cameras, keyed entrances, and security people walking around. That is reassuring but also adds to the price of living in such places.

Knowing these factors makes it easy to see why student housing is so expensive and plan the expenses accordingly to secure a comfortable and secure home when attending school.

Also Read: Indian Student Expenses in USA

Which is the best accommodation in the USA for Indian students?

When it comes to Indian students who are going to the USA for studies, accommodation plays an important part.

Student housing can be very expensive, but students have a lot of different choices, and if they know what they are, they can make the best decisions possible, weighing comfort, ease, and cost.

Here are the most popular accommodation types and what to expect in terms of cost and benefits:

1. On-campus housing

For instance, most international students, particularly those who are new to the United States, tend to opt for on-campus housing like dorms and residence halls. It offers convenience, safety, and a ready-made community, making it easier to adapt to campus life.

It can cost $800 to $1,500 (INR 67,752 to INR 1,27,036) per month, including meal plans, security, and recreational facilities, which add to the price.

One example is the University of California, Berkeley, which has an average cost of $1,200 (INR 1,01,629) per month, and the New York University, whose typical dorm costs range from $1,100 to $1,800 (INR 93,160 to INR 1,52,444) monthly.

2. Off-campus apartments

Off-campus apartments offer more freedom and privacy. They are often more affordable when shared with roommates, allowing students to control costs by choosing their food and utilities.

Monthly, it can cost between $500 and $2,500 (INR 42,345 and INR 2,11,728). Renting close to campus in cities like Boston or Los Angeles can be costly, while options farther away can reduce expenses but increase commuting time.

For example, Boston, MA, near MIT/Harvard) averages around $1,500 – $2,500 (INR 1,27,036 – INR 2,11,728) per month. Similarly, Austin, near Texas, has shared apartments that cost approximately $700 – $1,200 (INR 59,283 – INR 1,01,629) monthly.

3. Private student housing

Purpose-Built Student Accommodation (PBSA) has fully furnished apartments and amenities such as gyms, study lounges, and social spaces, all designed specifically for students. Utilities and internet are usually included, simplifying budgeting.

It can cost between $800 to $2,000 (INR 67,752 to INR 1,69,382) per month because of  premium facilities and all-inclusive pricing increase costs. They are the kind of dorms that cater to international students, with special cultural events and language support.

For example, the Standard at Knoxville (University of Tennessee) student housing cost ranges from $850 to $1,200 (INR 71,987 to INR 1,01,629) monthly, and the University House (University of Southern California) rents are between $1,200 and $1,800 monthly (INR 1,01,629 and INR 1,52,444).

4. Homestays

Homestays provide a home-like environment where students live with a host family. It includes meals and is a great cultural experience, perfect for students who need extra support.

It usually costs between $700 and $1,200 (INR 59,283 and INR 1,01,629) monthly, sometimes including meals and a family atmosphere. It can be priceless for many younger students or those not from America.

For example, in Los Angeles, the average monthly cost of homestays is about $900 (INR 76,222), including meals, and in Chicago, the costs can be somewhere around $700 – $1,100 (INR 59,283 – INR 84,69) per month.

5. Co-living spaces

Co-living spaces are the new version of shared housing, with private bedrooms and common areas. They always incorporate utilities, the internet, and community activities; they are the best way to meet new people and get to know them better.

It costs between $1,000 to $2,500 (INR 84,691 to INR 2,11,728) per month in major cities, where real estate costs are already high. Some popular examples include the Commons and Quarters, which cost between $1,500 and $2,500 (INR 1,27,036 and INR 2,11,728) . 

Also Read: Accommodation in Australia for Indian students

Tips to manage student accommodation expenses

While it’s not always possible to find affordable accommodation, there are steps that students can take to reduce their costs. Some tips are mentioned below.

• Sharing accommodation with other international students.
• Searching away from the popular student areas and trying to find unfurnished places.
• It is also necessary to budget and plan to prevent any unfortunate expenses.

Finding an apartment in a foreign country is another story; it takes time, advice, and a lot of research. Wherever you decide to live–on-campus housing, private or shared apartments– you have to consider the location, how long the lease is, the cost, the facilities, etc.

But looking for accommodation can be overwhelming. A lot of students have to go through a middle-man just to get that ideal living arrangement when they study abroad, and some end up getting ripped off.

This is one of the many phases of your study-abroad journey where GradPack helps.

How to save money on studies, accommodation, health insurance & forex with GradPack?

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Studying abroad is made easy, seamless, and pocket-friendly with GradPack. It’s a bundle of benefits that can help you:

• Get a low-interest education loan
• Get need and merit-based scholarships 
• Get better deals on forex cards with lower fees
• Book safe and comfortable student accommodation abroad
• Save $1000s on medical insurance plans

In this way, GradPack can save you close to INR 23 lakhs in expenses. 

So, plan now with GradPack for Spring 2025. Start now.

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