The finalised allocations will provide both the student accommodation and university sectors with much-needed certainty while encouraging sustainable growth. By linking international student places to housing capacity, the policy recognises the critical role purpose-built student accommodation (PBSA) plays in supporting Australia's education sector.
The government's decision reflects the robust development pipeline outlined in the latest Urbis Student Accommodation Benchmarks, produced in partnership with the Student Accommodation Council. The report shows more than 11,000 PBSA beds currently under construction, with over 15,000 beds in approved development applications and a further 12,000 in the planning phase.
NSW remains the largest growth market for student accommodation, with nearly 9,800 student-only beds in the development pipeline.
Student Accommodation Council Executive Director Torie Brown said it was heartening to see student visa allocation increase for universities that responded to the government's call to provide for more housing.
"Private operators are committing significant capital to provide the professionally managed accommodation students need in our major cities.
"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.
"The federal government has set clear expectations - now state and local governments must prioritise PBSA in their planning frameworks. We need streamlined approval processes and reduced foreign investor taxes at the state level to help deliver student housing at the scale and speed required.
"Standard residential housing is not a substitute for purpose-built student accommodation. Students need professionally managed facilities with support services and campus proximity, and the PBSA sector is working hard to deliver this."
Student Accommodation Council President Anouk Darling said, "The government's 2026 international student allocations reinforce a clear message: sustainable growth in education must be matched by serious investment in housing.
"As a sector we're here, mobilised and motivated to deliver world class student accommodation," Ms Darling said.
