One of the current concerns in education planning is factors causing high rent, low quality and dwinding supply of student housing at private universities. Up to now, most research studies reduced these problems to a question of demend and supply and simply advocate increases in production of housing unit. However, increasing the supply of housing had not ameliorated the problems, instead, it had exerebated the situation. This paper's hypothesis is that causes of the current student housing problems can be traced to the attempts by the government to produce a large technical labor force to meet the demand of post war economic boom. Using Tamkang University as a case, the analysis shows that as private higher education becomes more commodified, there is a corresponding reduction in willingness to invest in capital improvement of student housing, which does not provide divest economic return on investment. As a result, the housing problem is sloved temporarily by the informal sector outside of university campus in the surrounding community. During the 1980's in response to state's efforts to upgrade indurstial technology, the university began to expand rapidly. The community informal infrastructure and housing supply could not keep pace with the expansion, resulting in deterioration of housing and environmental quality. By 1988, the run-away land and real-estate speculation has adversely affected the community surrounding the Tamkang university, causing sharp increase in rent and thus a further disintegration of the student housing environment. These events finally culminated in the student anti-rent movement of 1989.