There is a long history of universities perceiving residences as pivotal in the learning process. Over the last 50 years, the nature and efficacy of residential environments as an educational tool have been extensively researched. However, within some sections of the tertiary residential sector, in the United States, the United Kingdom, New Zealand and Australia, the emphasis has gradually shifted away from the primacy of learning towards a view of accommodation simply in terms of housing. Public-private partnerships, emphasising facilities rather than learning, have proliferated. However, although the context for learning is different, residential environments should meet the same pedagogic standards as coursework. After reviewing the critical literature on the ways in which residences contribute to performance, engagement, retention and transition of students, this article proposes policy and personnel changes that may assist universities to implement effective interventions through second- and third-generation pedagogies.