One Nation leader Pauline Hanson has released economic modelling suggesting that reducing Australia's temporary migrant population by 750,000 over three years could lower rental costs by more than $4,300 annually.

The proposal forms part of One Nation's immigration policy, which aims to reduce temporary migration, particularly international student numbers, to ease pressure on Australia's housing market.

According to the party's modelling, rents could fall by approximately 9 per cent under its best-case scenario, equivalent to an average saving of around $83 per week or $4,340 annually.

The projections were based on a 2019 Reserve Bank of Australia research paper examining the relationship between population growth and rental vacancy rates. The research suggested that a 3 per cent reduction in population could produce a 9 per cent reduction in rents.

Former Reserve Bank economist Peter Tulip, who co-authored the original research, said the modelling was consistent with his findings because fewer people competing for rental properties would reduce demand and place downward pressure on prices.

However, Tulip warned that substantially reducing temporary migration would also have economic consequences, including lower income tax revenue and reduced earnings from international education.

He noted that education was Australia's fourth-largest export industry and that restricting international student numbers would reduce export income, potentially lowering the country's overall standard of living.

Australia has approximately three million temporary visa holders, many of whom live in rental accommodation. Strong rental demand has contributed to increasing housing costs, with rents rising faster than general inflation.

Although recent figures showed new housing completions had reached their highest level in almost seven years, Australia's housing shortage was expected to continue.

Hanson argued that high migration levels were contributing to competition for rental properties and placing additional financial pressure on Australian households.

The proposal has raised questions about how immigration policy could balance housing affordability with the economic benefits of international education, employment and population growth.

The projected rental savings remain estimates based on economic modelling rather than demonstrated outcomes of the proposed policy.