CAUBO Student Housing – Webinar Series: Part 2: Procurement Approaches & Lessons Learned in Student Housing

Procurement Pressures in Student Housing

Canadian post-secondary institutions confront a persistent shortage of on-campus student housing, with only about 10-15% of non-local students accessing purpose-built accommodation—far below levels in peer countries like the UK or US. This gap has long exacerbated local rental market strains in university towns, but recent shifts have altered the landscape.

Construction costs have escalated dramatically, with per-bed expenses in some projects jumping from $130,000-$150,000 five years ago to over $300,000 today, driven by inflation, supply chain issues, and labour shortages. Deferred maintenance backlogs exceed $17 billion nationally, and borrowing limits plus regulatory barriers stall even prepared initiatives.

The federal government imposed strict caps on international student study permits starting in 2024, reducing new arrivals sharply and projecting just 155,000 for 2026—a nearly 50% cut from 2025 targets. This policy aimed to ease housing and infrastructure pressures from rapid enrolment growth, and early evidence shows softening rents in some markets. Yet it has inflicted financial pain on universities and colleges, where international tuition often subsidises operations amid declining per-student public funding and frozen domestic rates.

Procurement approaches—whether traditional public builds, public-private partnerships, or market-led models—now demand careful navigation. Private involvement can transfer risk and accelerate delivery but introduces tensions over cost allocation, long-term control, and student experience quality. Institutions weigh these trade-offs against the need for new beds to support enrolment stability and community housing relief.

Recent provincial decisions, such as British Columbia's 2026 budget delays for projects like the University of Victoria's 510-bed residence, highlight fiscal tightening that further complicates timelines and viability.