Australia’s Student Accommodation Council has welcomed the federal government’s new 2026 international student allocations, which will reward universities that have invested in expanding student housing with higher enrolment quotas.
The decision links international student caps directly to housing availability — a move the Council says will encourage sustainable growth while easing pressure on the broader rental market.
The policy is underpinned by data from the latest Urbis Student Accommodation Benchmarks, produced in partnership with the Student Accommodation Council. The report highlights a strong development pipeline, with over 11,000 purpose-built student accommodation (PBSA) beds under construction, another 15,000 approved, and 12,000 more in planning.
New South Wales leads the way, accounting for nearly 9,800 new student-only beds currently in development.
Student Accommodation Council Executive Director Torie Brown said it was encouraging to see the government recognise universities and developers who are proactively addressing student housing shortages.
“Private operators are committing significant capital to provide the professionally managed accommodation students need in our major cities,” Ms Brown said. “Student housing is the only asset class that directly soaks up demand from the private rental market – every purpose-built bed is one less student competing for general housing.”
Ms Brown said the next step lies with state and local governments, who must help accelerate delivery by prioritising student housing projects in planning frameworks and reducing foreign investor taxes.
“Standard residential housing is not a substitute for purpose-built student accommodation,” she said. “Students need professionally managed facilities with support services and proximity to campus — and the PBSA sector is working hard to deliver exactly that.”
Student Accommodation Council President Anouk Darling said the 2026 allocation system sends a strong message about aligning education growth with infrastructure capacity.
“The government’s 2026 international student allocations reinforce a clear message: sustainable growth in education must be matched by serious investment in housing,” Ms Darling said. “As a sector, we’re here, mobilised and motivated to deliver world-class student accommodation.”
With demand for university places continuing to climb, the Council says the government’s policy strikes a sensible balance between maintaining Australia’s reputation as a leading study destination and ensuring students have access to safe, affordable and purpose-built housing.
