7 Demographic Trends Shaping Student Housing in 2024

The demand for student housing is driven by demographic trends shaping student life in 2024. The student housing market has observed various generational shifts in the student crowd, from Baby Boomers to Gen X, Millennials, and currently Generation Z, popularly known as Gen Z. Property operators and student housing developers need to constantly monitor demographic targeting to capture strong rental growth and returns.

As the market develops, major stakeholders need to adapt to the needs and preferences of students from Gen Z, who make up most of the student numbers in today’s higher education landscape. In this blog, property operators can unveil the current demographic trends shaping student living across the globe.

How Do Generational Shifts Affect Student Housing?

The student housing market has evolved and adapted to cater to students' needs. Back in the day, student accommodations were limited to dormitories or on-campus housing options. With fewer offerings, the focus was on basic amenities.

As of 2024, the rise of the Gen Z population (born between 1997 and 2012) in universities and colleges is shaping student housing and ultimately setting demographic trends in this market. Being more digitally-driven and technologically advanced, Generation Z demands modern offerings under the umbrella of “basic” needs in student living today.

1. Generational shifts: The generation shifts from Baby Boomers to Gen X, followed by Millennials and now to Gen Z, vary in preferences. From Baby Boomers to Gen Z, this evolution has given rise to the changing needs of students of different ages over the years.
2. Enrollment trends in higher education: Generation Z holds the dominant market share of the student crowd in universities worldwide today. For instance, nearly 3 million students are enrolled in higher education at universities across the UK (Source: Native).
3. Changing preferences of younger crowds: Sustaining a student housing business in a digitally connected world is challenging, especially because it is relevant to younger generations today. Keeping up with their demands is a huge task for property operators to offer modern student housing solutions to these tenants.
4. Influence of Gen Z on student housing: As Gen Z brings forth a unique set of characteristics and expectations to the table, operators need to adapt to these changes consistently. Whether it be smart home technology or sustainable living practices, Gen Z's influence has been significant for student housing developments today.

Top 7 Gen-Z Demographic Trends for Student Housing in 2024

Generation Z currently holds the majority of the market share when it comes to university enrollments. The whole group, along with Millennials, demand modern living standards in student housing. Here are the top demographic trends for student living in 2024, highlighting the preferences of Gen Zs:

1. Safety Remains a Top Priority for Gen Z

Generation Z is more aware and cautious about their safety, especially since the trend rising trend of international education. Heading to universities usually marks a transitional change for Gen Zers since they are moving out of their homes for the first time. Hence, security has become a demographic trend for Gen Z students in student housing.

• 24/7 on-site security team: Gen Zers are financially conscious and prefer walking to universities to avoid spending money on transport. There should be a 24/7 on-site security team or a designated ‘student buddy’ who can be alerted at the time of emergencies.
• CCTV surveillance cameras: Surveillance cameras are crucial to identifying any unknown person(s) on-site. Hence, CCTV cameras present in student homes are a must. Landlords can inform the local police in case of any security breaches.
• Digital locking systems & keycard access: Gen Zs are remarkably tech-savvy. They prefer keycard access or digital locks for their student homes.
• Safety precautions: Property management groups should keep well-lit areas in and around the student housing to ensure safety and enhance student living.

2. A Great Location Goes a Long Way

Surprisingly, in spite of being financially conscious, Gen Zs don’t shy away from high-priced properties located near universities. The simple explanation for this is the importance of the property location to them.

• Proximity to campuses: Gen Zers search for accommodations located close to their campus to avoid everyday transport costs. Student housing developers need to plan amenity offerings and manage resources in proximity to esteemed universities to attract Gen Z student renters.
• For example, some property management groups offer free shuttle services or bus passes to ease transportation. This demographic trend can further enhance student accommodations for Gen Z.
• City-centric locations: Gen Zers often search for student housing in city-centric locations, especially if there is none available near campus. Property operators managing a property located close to the city centre can have competitive pricing to earn more rental income.
• Good transport links: Student homes in isolated or secluded areas remain vacant due to safety concerns. Gen Z students prefer properties with good transport links.

3. Tech-Savvy Offerings are The New Norm

Undeniably, technologically driven facilities are among Gen Z's top demands. Generation Z’s familiarity and comfort with technology can be tapped into to enhance student housing offerings.

• Tech-driven amenities: This generation prefers modern amenities over traditional home setups, such as seamless, uninterrupted Wi-Fi or digital fitness centres. For example, California State University has a state-of-the-art wellness centre worth $70 million, with enabled hand scanners for secure entry. Gen Z students appreciate such innovations in student housing.
• Smart security and safety measures: As previously stated, smart locks and safety measures can improve students' overall security. Technological advancements are key in reshaping and elevating student housing in today’s world.

4. Affordability Is a Must for Well-Rounded Student Living

Gen Zers tend to save money for emergency expenses or even leisure. Therefore, it is crucial for this generation to save on rent as much as possible. This brings into the picture an integral aspect of student housing today — affordability!

• Value-for-money rental pricing: Gen Z students usually don’t mind paying moderately high rents as long as they get adequate value for their money. This financially conscious group considers modern amenities and services as ‘basic’. Hence, just amenities offered by property operators are simply not enough to charge premium rental prices as per Gen Zs.
• Flexible payment plans: Property management groups should offer flexible payment instalment plans to students. This helps Gen Z renters manage their expenses and budget their stay more efficiently.
• Exclusive offers & packages: Gen Z appreciates property offers or discounts to ease their overall student living expenses. Moreover, student kits, in collaboration with other brands, are also highly valued by Generation Z.

5. Student Communities & Social Interactions Matter to Gen Z

Gen Zers naturally gravitate towards social interaction and thrive on human interactions. Being digital social animals, online forums, and student groups in off-campus housing can help shape living standards for Gen Zs today. Hence, social community building in student housing has transformed into one of the major demographic trends today.

• Social events calendar: Social events improve tenant engagement and interaction. Property management groups should maintain a social events calendar to celebrate festivals and days of cultural significance to enhance student housing for Gen Z.
• Active student communities: By prioritizing inclusivity and social interactions, active student communities in student housing setups can be beneficial in bringing tenants closer. Property operators should provide communal lounges or common spaces to foster social interactions among Gen Z student tenants.

6. Short-Form Content Works the Best for Marketing Properties

Gen Z has a short attention span due to the rise of short messaging mechanisms and instant gratification on social media channels. According to Blavity Inc, Gen Zers’ attention span is a little less than 8 seconds today! As a result, property operators need to monitor student housing changes for efficient, targeted marketing toward relevant demographic trends.

• Short-form engaging content: In today’s digital age, various social media platforms push short video content as per their algorithms. Short video content to highlight offerings is a great way to capture property features uniquely. According to RentCafe, 52% of Gen Zs prefer virtual property tours.
• Leverage social media channels: If property operators want to get through to Gen Z, they need to leverage social media platforms to perfection. Static images with short copies or personalized messaging are crucial to attracting Gen Z tenants. Gen Z students usually prefer YouTube, TikTok, Instagram and Facebook for everyday interactions.

7. Inclusivity in Student Housing Is Key to Physiological Safety

Inclusivity and belonging are core needs of Gen Z today. Recently covered in a study by Ankrom Moisan, social awareness, sustainability, and inclusivity are all extremely valuable to Gen Z. Not only that, inclusivity in student housing environments is the key to their physiological safety.

• Value cultural & social diversity: Generation Z is known to be vocal about cultural and social importance. This is because Gen Z is actively driven by strong values of inclusivity and social justice. Property operators should develop inclusive practices on their student properties to ensure harmonious student living experiences.
• Sustainability practices: In addition to inclusive setups, Gen Z is close to nature and appreciates sustainable efforts. Property management groups and student housing developers should integrate sustainable student housing practices to attract Gen Z students to their properties.

Demographic Trends for Student Housing: The Road Ahead

Student housing preferences and needs have evolved over generations, with Gen Z currently paving the way for enhance student housing experiences. The future of student housing is highly dependent on Generation Z student renters and their accommodation expectations today. As the student housing market adapts and evolves as per student needs, so will the offerings in accommodations.

Property operators need to adapt to changing student housing trends and preferences to stay on top of the accommodation sphere globally. Student housing operators can list their properties with amber for more expertise in demographic trends and booking preferences of student tenants.