Government mandates more student accommodation for increased enrolments
The Australian government will require public universities to demonstrate the delivery of additional student accommodation if they wish to expand international student enrolments in 2026. The policy links future enrolment growth to the availability of student housing, aiming to address pressure on the private rental market.
The government also confirmed an increase of 25,000 places to the National Planning Level for international students, raising the allocation to 295,000 in 2026, up from 270,000 in 2025.
“This is a good outcome that recognises the critical role student accommodation plays in supporting the growth and integrity of international education,” said Torie Brown, executive director at the Student Accommodation Council.
“Requiring universities to demonstrate their commitment to providing housing for students to grow their enrolments is a sensible and necessary step, and one that aligns with our calls for more collaboration between the higher education and student accommodation sector.
“Every student in one of our buildings is a student not competing in the private rental sector. We have the capacity, the expertise and a proven track record of delivering high-quality housing options for both international and domestic students leaving home for the first time.”
Recent analysis from the Reserve Bank of Australia (RBA) highlights that the supply of purpose-built student accommodation (PBSA) has expanded to meet growing demand from international students. However, the RBA found that while international students contribute significantly to the economy, overall housing supply has not kept pace with demand. PBSA is identified as a key sector capable of delivering large-scale student housing solutions.
Under the new framework, universities can apply for increased student allocations if they meet government priorities, such as providing safe and secure accommodation.
“The private sector stands ready to work with the government and universities to increase the supply of professionally managed student accommodation that meets the needs of both domestic and international students,” Brown said.
“Our core business is providing a great place to live for young people while they study,” said Anouk Darling, president of the Student Accommodation Council and chief executive of Scape. “We are ready to work with the university sector to deliver even more world-class accommodation.
“International education is one of Australia’s most valuable exports – but we must ensure the infrastructure is in place to support it. Professionally managed student accommodation is purpose-built, safe, and community-oriented, and plays a vital role in relieving pressure on the broader rental market.”
The Student Accommodation Council has called for a coordinated, data-driven approach to increase the supply of professionally managed student housing, as Australia continues to face a housing shortage.
“We look forward to working with all levels of government to ensure student accommodation is part of the solution to Australia’s housing challenges,” Brown said.
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