New Student Accommodation Benchmarks show pipeline pressure as approvals drop

The latest Urbis Student Accommodation Benchmarks, produced in partnership with the Property Council of Australia’s Student Accommodation Council, provides a comprehensive snapshot of the Australian PBSA market, drawing on data from more than 165 buildings, representing approximately 72,500 beds and 52% of the national market.

The Semester 2, 2026 results show the PBSA pipeline has grown to more than 51,000 beds, with almost 18,000 beds under construction across the country.

However, while the overall pipeline remains robust, the benchmarks show the number of beds at development application stage has declined by 4.4% since the previous benchmark, falling from approximately 12,000 to 11,471 beds.

Development approvals have remained broadly steady, increasing by 1.7% to 22,128 beds nationally.

Urbis Director Alex Stuart said purpose-built student accommodation needed to remain an appealing option for investment.

“There is clearly appetite to invest in student accommodation, with almost 18,000 beds now under construction. The bigger question is whether Australia can convert that momentum into a sustained wave of new supply. That will depend on projects remaining feasible and Australia continuing to be an attractive market for capital,” Alex said.

“Purpose-built student accommodation does more than house students. Every additional bed also takes pressure off an already stretched rental market. The opportunity is to treat student accommodation as part of Australia’s broader housing solution, not simply as education infrastructure.”

The benchmarks reveal construction activity has continued across all major capital cities, with projects progressing in every key market.

Strong fundamentals continue to underpin sector performance, with occupancy remaining high and rents growing across several markets. Brisbane recorded the strongest rental growth nationally, with average rents increasing by 9% in 2026 following a softer performance in 2025.

PBSA remains an important part of Australia's broader housing ecosystem, as emphasised by Alex.

"Purpose-built student accommodation delivers more than student housing. Every dedicated student bed helps reduce pressure on the private rental market by providing housing specifically designed for a growing student population,” he said.

Contact us at benchmarks@urbis.com.au to gain access to the Student Accommodation Benchmarks dashboard.