Examining an evolving landscape
A closer look at supply and demand
Examining student accommodation supply and demand reveals a complex scenario. Despite a drop in bed provision from 2019 to 2023, demand is rising. About 30% of students currently stay at home, a figure set to increase due to rising domestic applications and cost-of-living issues. By 2030, higher education applicants are expected to surge, intensifying the need for accommodation.
Data analysis highlights disparities. Around 40% of upcoming beds target international students, though they don't make up 40% of the student population, signalling a potential mismatch. Additionally, demographic shifts, like more Indian students and fewer Chinese students in places like Leicester, add further complexity.
Expert opinions and insights
Our recent webinar and discussion, illuminated several diverse viewpoints:
- The significance of data in comprehending accommodation vacancies across different cities;.
- The emerging trend of early bookings, potentially driven by concerns about escalating utility costs by the end of 2022.
- Recognising that each university town or city represents a distinct market, necessitating customised strategies for optimal outcomes.
News reports indicating accommodation shortages could unnecessarily alarm students. It's crucial to provide comprehensive education to ensure students are informed about the accommodation situation in their chosen university cities. Additional challenges include escalating living expenses, increased prices due to the renovation of older accommodations, and the necessity of aligning supply with evolving demographics and student preferences.
Marketing adapting to change
While traditional email campaigns undoubtedly hold relevance, adapting to a digital strategy that resonates with Gen Z's online behaviour is paramount. This demographic, known for its extensive use of various online platforms, requires a multi-channel approach to effectively capture their attention and engagement. Understanding Gen Z's preferences and habits across platforms such as Instagram, TikTok, Snapchat, and others is crucial. By integrating these channels into your marketing strategy, you can align with their online behaviour and preferences. Add link to the lifestyle report to learn more about gen z trends and behaviour.
Collaborations and future outlook
Collaboration is vital. Universities, significant drivers of accommodation demand, are increasingly collaborating with the private sector to meet students' diverse needs. A more segmented approach, acknowledging the varied requirements of different student years and courses, will pave the way for sustainable solutions.
Moreover, as the peak of 18-year-olds approaches in 2030, the accommodation industry must be agile. With changing education patterns and external variables like cost of living, it's imperative for providers to stay innovative and relevant.
Concluding thoughts
The student accommodation sector in the UK, while challenged, is rife with opportunities. The blend of data-driven decisions, effective collaboration, and understanding the evolving student psyche is the way forward. As we anticipate another webinar discussing student accommodation challenges, it's evident that the industry's focus remains - ensuring every student finds a suitable, memorable place to stay.
Reach out to our team for a discussion and expert guidance. Drop us an email at accommodation@ucas.ac.uk, and let's collaboratively navigate the future of student accommodations marketing.