The university is calling for expressions of interest to partner them in creating self-catered accommodation on the main Wollongong campus.

Deputy vice-principal (finance and IT) Damien Israel said he hoped something would be at least partly in place by the start of 2011.

"The university provides just over 1400 beds for students," he said. "We have very strong demand for those existing beds and think there is a need for additional accommodation for students."

Mr Israel said the location being considered was a grassed area in the south-west corner of the campus, subject to planning approval by Wollongong City Council.

Research suggested completion rates for students improved if they lived on campus, and they had an improved university experience.

Wollongong Undergraduate Students' Association (WUSA) president Hailey Sutton welcomed the proposal and said university accommodation was extremely popular.

"Most semesters the university-run accommodation fills up relatively quickly and people have to look for accommodation elsewhere," she said.

"There are always a few who have trouble finding accommodation.

For most students, university accommodation is the most cost-effective way of living, depending on how much freedom they want."

Ms Sutton said the benefits of living on campus included access to facilities at all times and an improved social life.

"If you move to Wollongong and if you don't live on campus, it can be difficult to make friends," she said.