Understanding Changing Preferences of Gen Z in International Student Housing

Introduction

Student housing has changed dramatically over the years, owing mostly to the shifting demands of Gen Z students. As this generation expands to attain higher education, Generation Z brings forth certain qualities and expectations that shape the demand for student residences. In this competitive industry, understanding their preferences is critical for accommodation providers and property management groups.

In this blog, we will deep dive into the changing preferences of Generation Z student in housing, including exploring their demographics, interests, rental preferences, desired accommodation features, and more.

1. Who are Gen Z or Generation Z?

Let's start by defining what Generation Z really is. Born between 1997 and 2012, Gen Z is the generation succeeding Millennials. In the context mentioned, this age category specifically pertains to students aged between 18 and 24. Often referred to as digital natives, Gen Z’s are characterized by their adaptability, diversity, and entrepreneurial mindset. Their unique upbringing and experiences have shaped their perspectives on education and student life.

2. Peeking Into Gen Z International Student Housing Demographics

To understand the changing preferences of international Gen Z students, it is crucial that we understand their demographics and key statistics of international  student housing.

The table provides an overview of the student population, the number of international Gen Z college students, the countries of origin for international students, and some prominent universities in each country, namely the United Kingdom, the United States of America, and Australia.

3. Preferences of Generation Z in International Student Housing

Generation Z students have distinctive interests and preferences when it comes to student housing. Understanding Gen Z preferences can help property management groups create offerings that align with the needs and desires of this generation.

a) Location & Accessibility

Convenience and accessibility are paramount for Gen Z students. Gen Z prefers their student residences to be located near educational institutions, minimizing commute time and providing easy access to campus facilities. Additionally, being near public transportation and essential amenities, such as grocery stores and entertainment venues, is highly desirable as well.

b) Affordability is a Key Driver

As Generation Z students enter higher education, affordability becomes a critical factor in their decision-making process when it comes to choosing student residences. Offering budget-friendly options and affordable rental prices will make your student accommodation more appealing to this group who are conscious of their expenses.

c) Modern Amenities & Tech Facilities

Given their tech-savvy nature, Gen Z students expect modern amenities and facilities in their student housing options. Access to high-speed internet, communal study spaces, fitness centers, and laundry facilities are essential. Additionally, student accommodations with secure access systems and 24/7 surveillance are preferred for enhanced safety. Students are used to online transactions, which means the property operators will have to adapt to building mobile apps for student rental payments, laundry charges, agreements, rebooking, and other such operations that are transactional in nature.

d) Social Spaces & Community Engagement

Gen Z college students seek opportunities for social interaction and community engagement. They value student accommodations that offer communal spaces, such as common rooms, game areas, outdoor spaces, study spaces, and organized social events, where they can connect with their peers and gain a well-rounded experience in their academic year. For property managers, it’s extremely important to attract students from different source countries for diverse student communities. Marketplaces like amber source students from over 160+ diverse nationalities.

e) Flexibility & Customization

The majority of students look for monthly or semester-based leases, allowing them the flexibility to choose accommodations that align with their academic calendar and financial situation. Flexibility in lease terms can be a major factor in attracting Gen Z students. Thus, this allows them confidence in booking the property, providing the freedom to allocate financial resources for daily expenses.

f) Preferred Room Types

Gen Z students choose room types based on their needs and preferences. According to amber Student Housing Report 2023, there were several interesting facts that came to light:

g) Sustainability is the New Way of Life

Generation Z is environmentally conscious and prioritizes sustainability. They gravitate towards accommodations with eco-friendly features, such as energy-efficient appliances, recycling facilities, and green spaces. PMGs that incorporate sustainable practices and initiatives in their properties are more likely to attract Gen Z students.

4. How Can Property Managers Attract More Gen Z Students?

With the influx of Gen Z international students entering higher education, property managers might face the challenge of attracting this demographic. For that to be possible, the PMGs or property managers can employ various marketing strategies that can appeal to them. Here are some key approaches to consider:

a) Branding & Positioning for Gen Z:

1. Create an Authentic and Unique Brand Identity: Developing a strong and distinct brand identity is essential for attracting this group of students. Your brand should resonate with their values, aspirations, and sense of individuality. Utilize eye-catching visuals, compelling content, and a consistent tone of voice that aligns with Gen Z preferences.
2. Conduct a Thorough Competitor Analysis: To improve brand value and stand out among competitors, property managers must conduct thorough competitor analysis. This analysis involves researching and understanding the strategies and offerings of other student housing properties in the area. By doing so, property managers can identify gaps in the market and discover opportunities to position their brands more effectively.‍
3. Tech-Enabled Living Spaces: As a digitally native generation, the Preference of Generation Z students in their living spaces is to be equipped with the latest technology. Smart home features, high-speed internet connectivity, and integrated digital systems are highly desirable. These tech-enabled environments not only facilitate their academic pursuits but also enhance their overall living experience.‍
4. Leverage Social Media Platforms: Gen Z students are highly active on social media platforms, making them an ideal target audience for digital marketing campaigns. Utilize platforms such as Instagram, TikTok, and YouTube to showcase various amenities, community events, and testimonials of your student accommodations.‍
5. Create Engaging Video Content: Videos are a powerful medium for capturing Gen Z's attention. Create visually appealing and informative video content that showcases your property's unique features, amenities, and vibrant student community. Amber helps you create extremely engaging video content to market your property to a diverse student base. Properties can derive an edge since the videos are pushed via inventory pages and social media platforms like Instagram, YouTube, Facebook, and more.‍
6. Collaborate with Influencers: Influencer marketing can be an effective strategy for reaching Gen Z students. Identify influencers within the student community or those who align with your brand's values and collaborate with them to promote your student accommodation. Influencers can create authentic and relatable content that resonates with their followers, increasing brand awareness and attracting potential tenants.

b) Place Your Property with Verified Student Housing Aggregators

Students being extremely tech-savvy, turn to marketplaces for making a purchase decision. Partnering with reputable student accommodation aggregators provides property managers with several advantages for attracting Gen Z students:

1. Increased Visibility and Reach: By listing your property on a trusted student housing aggregator platform like amber, you can increase your property visibility among this target group actively seeking affordable housing. This increased visibility can significantly boost your property's chances of attracting more tenants.
2. Simplified Booking Process: International student housing aggregators have a streamlined booking process for students, providing a user-friendly platform that simplifies their search for suitable accommodations.
3. Enhanced Credibility and Trust: Listing your property with a reputable student accommodation aggregator adds credibility and trustworthiness to your offerings since Generation Z students value authenticity and reliability. By associating your property with a trusted platform, you can establish a sense of trust from the start and become profitable in the long run.
4. Data-Backed Strategic Decisions: Additionally, unlike any other marketplace, amber is a student housing solutions provider. It provides property management partners with booking dashboards which can help the management make data-driven strategic decisions for international expansion and dynamic pricing strategies. With amber, management groups can understand the changing market dynamics due to booking-lead-volume analysis. Making timely strategic decisions can help operators boost their revenue significantly.

Conclusion

As Gen Z students continue to enter higher education, they continue to challenge the student accommodation market to adapt to their evolving needs. Proximity to educational institutions, rental budget, modern amenities, community engagement opportunities, flexibility in lease terms, and sustainability are key considerations for Gen Z when selecting their student accommodation.

By understanding and adapting to the changing Gen Z preferences, student housing providers can create an environment that aligns with the preferences and needs of these students, resulting in high demand and tenant satisfaction. If you believe your property is ready for Gen Z tenants, list it with amber today and find your one-stop solution to all your strategic needs.

‍

‍

‍