The University of Canberra will guarantee accommodation for all first-year domestic students and international students next year.
The university has spent millions of dollars upgrading and building new student accommodation over the past few years.
It is the first time the university has made the pledge, and vice-chancellor Professor Stephen Parker hopes it will attract more students who may have been deterred by Canberra's lack of affordable accommodation in the past.
"We hope this provides peace of mind for the students and their parents and families by relieving the stress they can face in trying to find accommodation," he said.
Single rooms will be available starting from $141 a week, which is below the market rate due to a Federal Government subsidy scheme.
Professor Parker says the benefit will be felt throughout the community.
"By ensuring the availability of student accommodation we are also reducing the pressure on rent prices in Canberra's affordable housing market, as these students now won't have to compete for a room with families and people moving to the ACT for work," he said.
UC wants to increase its enrolments by 50 per cent to 20,000 students by 2018.
Mr Parker says his and Australian National University vice-chancellor Ian Young reinforced how competitive the university market is.
"So to be able to offer this guarantee as a kind of package, assure parents they can go on the web and see an image of the kind of room that the student will get, will really help us in a competitive situation and therefore help Canberra," he said.
Mr Parker says any spare rooms will be offered to second and third year students who have already expressed interest.
The accommodation will be provided by Campus Living Villages, Arscott House and Uni Lodge, and includes Weeden Lodge that opened in the Belconnen town centre last year.
A new wing of Weeden Lodge is due to open next year, along with the the eight-story Cooper Lodge on the university campus.