What’s next for student accommodation in 2025
Over the last 12 months the higher education sector has experienced a once-in-a-decade readjustment. As the impact of colliding market forces becomes clear and the dust starts to settle, savvy student accommodation operators are realigning their strategies to navigate the opportunities and headwinds in front of them. Increasing agility and developing greater resilience are the topics typically driving board room conversations; maximising revenues by better engaging and monetising demand, combined with driving down costs wherever possible. . Our recent webinar unpacked some of the drivers now shaping decision making across the sector, as well as primary considerations for stakeholders. Here are the key takeaways:
Affordability is more important than ever
Across the industry there is strong evidence that students are seeking more affordable accommodation , and particularly in the secondary and tertiary markets. Students and their families are navigating financial constraints, prompting institutions to reassess pricing models, leasing strategies and acquisition channels.
The role of technology in addressing affordability
Rather than reduce pricing and erode yields as a first port of call, many PBSA portfolios are exploring more flexible payment options to address the cost-of-learning crisis and drive conversion of leads. Guy highlighted the importance of offering the broadest possible set of payment options, including configurable installment-based payments and similarly flexible arrangements. This is key to developing a more personalised, accessible and scalable accommodation offering that aligns with student needs.
The need for flexibility and diversification
Increasing flexibility – by which we mean the ability for an operator to stay agile and tap into different pools of revenue as needed – and the need to diversify revenue streams to ensure greater defensibility and resilience – is a key priority that’s shaping the student accommodation market. Whilst this will be more fully addressed in a next webinar, the discussion touched upon some opportunities and commonalities between PBSA and university portfolios in terms of better leveraging short and medium-term rental demand to monetise voids and offer students more flexible, more affordable leases.
There is a clear focus across the industry on placing student well-being at the heart of strategic thinking, combined with embracing tech innovation and sustainability with a view to driving down cost whilst unlocking ever more exceptional living experiences that are fundamentally aligned with the wants and needs of Gen Z – and, in due course, Gen Alpha.
What’s to come in 2025
This was the first in our new series of Lavanda Lens webinars, which are designed to keep you and your team informed with the trends and insights shaping the accommodation industry. We invite you to subscribe to our Lavanda Lens newsletter on LinkedIn to receive regular updates and analysis straight to your inbox.
For on-demand access to this webinar, click here to visit our YouTube channel
