The student accommodation market has long been one of real estate’s more predictable sectors. Strong underlying demand from domestic and international students meant rooms filled quickly, rent growth was generally resilient, and investors could rely on a rhythm: academic year, lease start, occupancy secured.
Today, that story is evolving. Students aren’t just living differently — they’re searching differently, comparing differently, and demanding more value than ever before:
“79% of online teenagers (aged 13-17) use generative AI tools and services, which includes AI search functions. ”Ofcom UK
In a world shaped by AI-powered tools, intensified cost-of-living pressure, and shifting lifestyle expectations, the industry must adapt. The winners won’t just be those who build more beds; they’ll be the ones who understand behaviour and optimise performance at the granular, room-by-room level.
Students Are Changing How They Find Accommodation — and What They Value?
“22.5m people used AI tools in October 2025.”IAB UK
The days of students passively choosing the first available room are fading.
Recent research shows that over 60% of students use AI-assisted searches or tools in the hunt for accommodation, valuing speed, personalisation, and advanced filtering — even if trust in AI’s accuracy is still developing. (Accommodation for Students) This reflects a broader shift in expectations: today’s students have grown up with technology that anticipates their needs, and they expect the same sophistication when choosing where they’ll live.
Sites that deploy smarter filters, responsive design and AI-powered recommendation systems are already winning engagement. Students increasingly search by budget, amenities, proximity to campus, study spaces, and community — not just price. This means providers have less room for error when positioning their assets: understanding what students are actually looking for has become a competitive edge.
That’s just the beginning.
Cost of Living Isn’t Just a Squeeze — Is it Changing Decisions?
The cost-of-living crisis isn’t abstract for students — it’s a lived reality.
According to the 2025 National Student Accommodation Survey, the average monthly rent sits around £563 nationally and £812 in London, with many students struggling to see accommodation as good value. Nearly half (46%) don’t feel their home represents value for money, and a worrying 36% have considered dropping out due to rental costs. (Save the Student)
Meanwhile, independent reports show that PBSA rents have grown by around 7.5% annually, yet incentives such as discounts and cashback are growing even faster — at 15% per year — as operators compete for bookings. (pbsanews.co.uk) This tells us something important: students want quality — but they also want fairness and value, and they’re willing to shop around for it.
For investors, the implication is clear: the old assumption that “beds will always fill” is being replaced by a more nuanced reality where perceived value, choice, and digital experience influence outcomes as much as location or heritage reputation.
Are you Getting Ahead of Digital Search Channels? It’s Influencing Market Dynamics
“24% of 15-24s used every day in September 2025. ”IAB UK
Platforms like StuRents have built data ecosystems that reveal changing student search behaviour, showing not only when and what types of rooms are being searched, but also how those patterns vary across cities and bedroom types. (StuRents.com)
This generation of students is comfortable comparing dozens of options before deciding. They expect intuitive search interfaces, quick responses, and personalised recommendations — often powered by AI. The industry has a choice: either build or integrate better digital experiences or cede engagement to third-party platforms and lose visibility on prospective residents.
“The top three uses of AI at work are generating ideas (44%) looking up information (41%) and creating written content (39%).”IAB UK
This trend is not just about marketing or lead generation. It’s about building a deep understanding of how students think, search, and choose which in turn influences pricing strategies, amenity planning, and retention tactics.
Living Differently: The Behavioural Shift Inside these PBSA Assets
Search behaviour is just the surface. Once students move in, their relationship with the space is also changing.
In a cost-conscious world, students are more mindful of:
- Shared amenity usage
- Communal spaces and social interaction
- Practical living elements such as heating, ventilation, and comfort
- Utility costs often included in rent
Moreover, broader surveys show that issues like damp or inadequate living conditions are still common — with a third of students reporting at least one issue in their home. (Save the Student) These aren’t just maintenance tickets; they influence well-being, retention, and brand perception.
Industries outside real estate have long recognised that experience drives loyalty and retention. The PBSA sector is now in that same phase of evolution: the better you understand how spaces are used, the better you can tailor service, reduce costs, and protect asset value.
The future of student accommodation won’t be about bricks and beds alone. It will be about understanding how students think, search, live, and interact with spaces. For investors and operators, the message is optimistic: the tools and data exist to align operations with modern student behaviour. When real-world insight informs strategy — from marketing to energy efficiency to condition monitoring — PBSA can become even more resilient, responsive, and value-creating.
The student accommodation market is not only adapting — it’s becoming smarter. And that’s an exciting future for those ready to invest in people-centric, data-driven assets.