Gen Alpha and Technology: Shaping the Future of PBSA

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Yardi’s Account Executive, Chloe Sachikonye, joined industry experts at Property Week’s Student Accommodation Conference 2024. Held in London, the panel explored the topic of Generation Alpha and their evolving technological needs in PBSA. Gemma Le Marquer from Empiric Student Property moderated the panel, which included Fred Lerche-Lerchenborg from Lavanda and Sam Scott from Fresh.

Understanding Gen Alpha: The Native Digital Generation

The Emergence of Gen Alpha & the Evolving Need for Technology

The technological landscape is rapidly evolving and the younger generation, Gen Alpha, is poised to be at its forefront. Born from 2010 onward, these digital natives are growing up in an era where AI, smart devices and digital solutions are seamlessly integrated into daily life. For industries such as purpose built student accommodation (PBSA), the challenge lies in anticipating the preferences and expectations of this generation while leveraging technology to enhance experiences.

The discussion began with an exploration of Gen Alpha’s defining characteristics and how they differ from previous generations such as Gen Z. Le Marquer set the stage by posing a critical question – “how can we anticipate the needs of this generation, who will begin entering universities and accommodations around 2030?”

Lerche-Lechenborg highlighted an anecdote about his six-year-old interacting fluently with ChatGPT, emphasising that AI will not be a novelty but an integral part of life for Gen Alpha. Unlike Gen Z, who adapted to the proliferation of digital tools, Gen Alpha will view “AI as a colleague, advisor and confidant”. They will likely expect instantaneous, AI-driven interactions, whether “to gather building information” or solve problems. Building on this, Le Marquer noted how “25% of Gen Alpha are talking to their smart devices”, yet less than half of that talk to their grandparents.

Similarly, for Scott, the difference between the two generations is not revolutionary but evolutionary. He suggests that the key lies in how Gen Alpha adopts and personalises their technological experience. For organisations, this means staying ahead of trends in platform preferences while “adapting services” to meet these evolving expectations.

Sachikonye adds that technology will become so “embedded in Gen Alpha’s lives that it will define their daily routines”. Consequently, businesses, especially those in the tech and PBSA sectors, “must remain agile” to introduce and adapt functionalities that resonate with this digitally immersed generation.

The Role of Technology in PBSA: Striking the Right Balance

The PBSA sector stands at the intersection of technology and service. The panel discussed the role of technology in this space, emphasising the importance of efficiency, engagement and human connection.

Scott proposed a “three-lens approach” to evaluating technological adoption in PBSA –the benefits to clients, residents and employees. For clients, he suggests “looking at can you secure your income faster and easier and cheaper?”. With residents, technology should enhance convenience and engagement, such as by streamlining payment processes or enabling seamless communication. For employees, technology should alleviate operational burdens, allowing them to focus on building personal connections with students.

The Emergence of Gen Alpha & the Evolving Need for Technology

Lerche-Lechenborg argued for minimising “complexity”. He suggested that operators focus on core functionalities and “prioritise seamless integration”. Overburdening staff with “multiple platforms and logins creates inefficiencies” and detracts from the human aspect of service delivery. Sachikonye echoed this sentiment, stressing the importance of “hygiene factors” such as reliable communication tools and efficient payment systems. By getting these fundamentals right, she explains that PBSA providers can build a solid foundation for future innovation.

However, while technology promises to revolutionise PBSA, the panel cautioned against over-reliance on automation. When asked about robots delivering customer service, Scott shared an insightful business case from a past project involving virtual receptionist technology. He noted that clients rejected this as they valued human interaction.

This serves as a reminder that technology in PBSA should enhance, not replace, the human element. Solutions such as “digital parcel lockers, which allow students to access deliveries at their convenience”, illustrate how technology can improve experiences without diminishing personal connections. As Sachikonye succinctly put it, “We don’t want technology for technology’s sake.”

Looking Ahead: Anticipating Challenges & Avoiding Pitfalls

Implementing technology comes with challenges, from managing costs to ensuring adoption. Sachikonye emphasised the importance of collaboration across departments — “finance, operations and on-site teams”— to align technology solutions with organisational goals. She also highlighted the dangers of relying on too many platforms, which can lead to “inefficiencies and user fatigue”.

The Emergence of Gen Alpha & the Evolving Need for Technology

Lerche-Lechenborg offered a novel solution to promote technology adoption – “empower employees to experiment with tools”. By giving teams the freedom to choose and test technologies, organisations can foster a culture of innovation and reduce resistance to change. He framed technology as an “enabler”, akin to the transformative impact of “PCs and smartphones”, urging businesses to view AI as a tool to enhance productivity rather than a threat to jobs.

The panellists concluded with reflections on the future of technology in PBSA. To remain competitive, operators must adopt a discerning yet flexible approach to tech investment. This involves crafting a “clear three to five-year strategy” while staying open/flexible to emerging innovations that align with organisational priorities, quoted Scott.

Lerche-Lechenborg pointed out the importance of intuitive design, advocating for technology that anyone, regardless of their tech-savviness, can use. The “Apple principle,” as he described it, will ensure that systems are user-friendly and enhance rather than hinder operations. Sachikonye ended the discussion by accentuating Scott’s previous statement and emphasised the need to map out operational processes first. She reminds the audience that no solution can do it all, but if you can “get the fundamentals right, you can build upon it.”

See what events we’ll be attending in 2025 and meet with Team Yardi, or get in touch to see how our centralised property management technology for PBSA can help improve student experience.