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Writer's pictureHenry Zhang

NSW LEP: What is a 'Boarding House'?

Updated: Nov 28

Boarding House -


means a building or place—

(a)  that provides residents with a principal place of residence for at least 3 months, and

(b)  that contains shared facilities, such as a communal living room, bathroom, kitchen or laundry, and

(c)  that contains rooms, some or all of which may have private kitchen and bathroom facilities, and

(d)  used to provide affordable housing, and

(e)  if not carried out by or on behalf of the Land and Housing Corporation—managed by a registered community housing provider,

but does not include backpackers’ accommodation, co-living housing, a group home, hotel or motel accommodation, seniors housing or a serviced apartment.


A boarding house can be an excellent investment opportunity or a valuable addition to certain zones where affordable housing is a pressing need.


For developers and property owners, creating a boarding house can offer a reliable income stream while addressing critical community issues such as housing shortages and affordability.





High-Demand Urban Areas


In urban centres, particularly those experiencing a housing affordability crisis, boarding houses provide a practical solution for individuals priced out of traditional rental markets.


Students, young professionals and low-income earners often seek long-term, affordable housing near employment hubs, educational institutions or transport links.


Developing a boarding house in such areas not only meets a market demand but also aligns with planning objectives that promote housing diversity and inclusivity.


Transitional Housing in Growth Corridors


In regions undergoing rapid development, such as outer metropolitan growth corridors, boarding houses can serve as transitional housing for individuals relocating for work or education.


By offering affordable accommodation, these developments support the local economy by attracting workers who contribute to new infrastructure projects, retail centres and services.


This housing model helps stabilise communities during periods of rapid change while meeting the objectives of local councils to create diverse residential options.


Revitalisation of Underutilised Zones


In areas with underutilised land or vacant buildings, converting properties into boarding houses can revitalise neighbourhoods and increase land use efficiency.


These projects provide an opportunity to transform ageing structures into modern, functional housing that supports community growth. Additionally, such developments often align with zoning objectives by increasing population density in areas with existing infrastructure, such as public transport, utilities, and community services.


Supporting Local Employment Hubs


Zones surrounding industrial parks, hospital precincts or retail centres can benefit significantly from boarding house developments.


These facilities offer accessible housing for shift workers, entry-level employees, or healthcare workers who might struggle to afford other housing options in the area.


By addressing the housing needs of these critical workforces, boarding houses contribute to the sustainability of local businesses and services.


Addressing Social Housing Gaps


For councils and developers prioritising affordable housing, boarding houses play a vital role in filling gaps left by traditional social housing programs.


By working with registered community housing providers, boarding houses can offer secure, long-term accommodation for vulnerable populations, including single adults, individuals transitioning out of homelessness or those on low incomes.


This objective aligns with broader government policies promoting social inclusion and equitable access to housing.

For a free quote in obtaining a Commercial Change of Use approval, click below:




Commercial change of use NSW - boarding house

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