Higher education is one of the driving forces of the national economy. Educated human capital is important for the development of Latvia's competitiveness. Over the last twenty years, higher education has become an important market service for international markets, as analysed in several studies. In order to ensure the competitiveness of Latvian higher education in Europe, it is necessary to ensure the attractiveness of universities and studies in Latvia not only for local, but also foreign students, new generation teachers, high-level lecturers and guest lecturers. This, in turn, requires the need to improve the quality of studies and living conditions, creation of temporary accommodation for lecturers and guest lecturers, and the provision of jobspromotion of entrepreneurship. The aim of the study is to analyse the trends of higher education development in Riga, and the problems of affordable, high quality housing. The study analyses the dynamics of the number of students in major Latvian universities, the dynamics of the number of foreign students and the current situation in the field of student hotels, has conducted a survey among students on the availability of housing, quality and preferred housing and environment during studies, summarized the results of the survey, and made conclusions and proposals to improve the current situation in student housing. The study also looks at some good examples of student campus development in Latvia as well as the construction of student dormitories abroad, such as modular wooden houses in England.