As AI becomes embedded in everyday life, its influence extends beyond technology and into fundamental questions about how and where people choose to live.
A new paper by M&G – Global Real Estate Outlook 2026: Real estate in the age of AI – Mapping tomorrow’s landscape – explores the shifts in learning, employment and lifestyle that are beginning to reshape housing demand across every life stage.
This series will explore how these changes are redefining the living sectors – from student housing and residential markets shaped by new working patterns to senior living and the rise of destination-led communities – and what this means for real estate investors and developers navigating an AI-driven future.
The first in the series looks at student living in the age of AI. Artificial intelligence is reshaping not only how people work, but also how they learn – and that shift is beginning to reverberate through student housing markets globally. As AI becomes more embedded in the workplace, the value proposition of higher education is being re-examined, with direct implications for where students choose to study and live.
Student living is entering a period of structural change. AI-driven tools now offer alternative routes to skills acquisition, particularly for roles traditionally associated with white-collar graduate employment. As a result, students are becoming more selective, prioritising institutions that deliver clear long-term value rather than volume-based education models.
Demand is increasingly concentrating around elite and globally recognised universities that offer strong networks, in-person collaboration, and skills that complement rather than compete with AI.
These institutions tend to foster creative thinking, innovation, and social capital – attributes that remain difficult to automate. M&G highlights that student accommodation linked to these universities is likely to remain resilient, underpinned by sustained demand and international appeal.
At the other end of the spectrum, institutions offering easily replicable or highly automated course content may struggle to differentiate themselves. For student housing providers, this creates a widening performance gap. Location alone is no longer sufficient; institutional relevance and educational quality are becoming decisive factors in asset viability.
For investors and operators, the implication is clear. The student housing market is no longer homogeneous. Future performance will depend less on total student numbers and more on alignment with institutions that can demonstrate enduring relevance in an AI-augmented economy.
Assets tied to the wrong universities risk potential long-term obsolescence, while those embedded within strong academic ecosystems may benefit from deepening demand. M&G states that institutional relevance will become the decisive factor in whether student accommodation succeeds or fails.
