New Urbis research for the Property Council of Australia (PCA) examines how residential tenancy legislation is affecting the purpose-built student accommodation (PBSA) sector. The report, Unfit for Purpose: How residential tenancy laws are undermining purpose-built student accommodation, finds that tenancy laws designed for the traditional private rental market are becoming increasingly misaligned with the way student accommodation operates.
PBSA plays an important role in Australia's housing system by providing accommodation for students and helping to ease pressure on the broader rental market. The report highlights that Australia currently has around 137,100 student accommodation beds across 522 facilities, with more than 47,600 additional beds proposed or progressing through development. However, around 65% of this pipeline has not yet commenced construction, highlighting the challenge of bringing future supply online.
The report identifies a range of regulatory challenges affecting the sector, including lease termination settings, break lease compensation arrangements, Queensland's room-based rent increase rules, and inconsistencies between residential tenancy legislation and obligations under the National Higher Education Code to Prevent and Respond to Gender-based Violence 2025.
It also calls for a dedicated legislative framework for PBSA, or targeted reforms to existing residential tenancy legislation, to better reflect the sector's operating model and support the delivery of future student housing supply.
Read the full report here.
