What is the next iteration of PBSA?
The residential real estate sector is vast, encompassing a variety of sub-sectors that respond to different demographics, investment strategies, geographical nuances, affordability, and lifestyle preferences. Over time, industry professionals have developed specific terminology to distinguish these sub-sectors, with acronyms such as BtR (Build to Rent), SFH (Single Family Housing), and PBSA (Purpose-Built Student Accommodation) becoming commonplace. But as our society and housing needs evolve, are these names helpful or necessary? Do they provide clarity or constraints?
Residential Sub-Sectors at a glance
Some of the most widely used terms in residential development include.
- Purpose Built Student Accommodation (PBSA) – private/institutionally owned and managed student living, generally with amenity facilities.
- Co-Living – a blend of PBSA and Built to Rent, providing a lifestyle choice with compact apartments and community led amenities with flexible rental options. These are institutionally owned and managed and is a contemporary alternative to PRS shared housing.
- Build to Rent - Institutionally owned and managed rental apartments – also called ‘Multifamily’ in America.
- Single Family Housing - Suburban institutionally owned and managed rental homes. This is challenging the traditional house-builders ‘For Sale’ models.
- Private Rented Sector (privately owned and rented urban or suburban homes)
- Senior or Later Living or Retirement Living – There are many forms of typologies and services for older people which range from community and lifestyle focussed rental to serving the care needs for dependants.
Why Do These Distinctions Matter?
Understanding the various residential sub-sectors helps investors, developers, and policymakers make informed decisions. Each typology has unique market dynamics, risk profiles, and resident expectations. As the housing landscape evolves, clear and consistent terminology can support more effective decision making, improve investment strategies, and ultimately ensure housing solutions that genuinely meet the needs of diverse communities.
Whether you’re an investor exploring new opportunities or simply interested in how housing trends are shifting, recognising these sub-sectors is key to understanding the modern residential market.
Whilst these references appear to matter from a Real Estate investment, Policy and Planning perspective, from a resident’s point of view the picture is less clear. Terms like BtR or PBSA are rarely understood outside industry circles. In the UK, where home ownership remains deeply rooted, rental models are not widely understood, even as preferences shift towards more flexible, community focussed living options.
How could things evolve?
In reality, many of these typologies are beginning to overlap. For BtR for instance now attracts students, professionals, families and retirees.
In response to this terms such as ‘Flex-Living’ and ‘Blended Living’ are emerging. These seem to challenge the notion that people of certain demographics all need to live together and embrace intergenerational, multi need communities built around adaptability and inclusion.
The other important point of distinction here is that residents could change their home preferences within a rental community/neighbourhood they feel part of in a long-term context.
A strong example of this is Birchgrove and Hybr’s 2024 intergenerational living scheme in North London which sees Retirement Homes and Student Living side-by-side.
Research also supports this model; A 2019 UCL study found that increased social contact improves well-being and reduces dementia risk in the elderly. Intergenerational Living boosts older people’s sense of purpose and life expectancy. Conversely younger people also benefit, gaining empathy, wisdom, tolerance, and understanding by connecting with older generations, fostering stronger relationships and mutual growth. Based on this, could more dynamic housing models positively impact some of our bigger society and welfare challenges?
Flexible Housing for Evolving Lives
Could housing evolve with its residents? This concept involves a dynamic development arrangement that adapts to an its residents evolving needs over time. Initially, a student might occupy a bedroom or apartment designed for their specific requirements and budget. As their lifestyle changes, they could transition into a next stage Co-living offer, then progress to a larger shared apartment. They could then transition into a family-oriented home and, later, to a residence more suited to the needs of older adults—offering flexible space options.
How would this model manifest within a building, or arrangement of buildings? Does everyone have a separate entrance? Are the homes stacked vertically or horizontally across the building? Importantly, how would this model work from an investment perspective? Could it be a more effective and optimised investment model?
What’s Next?
As housing needs continue to evolve, it may be time to reassess how we define and distinguish residential sectors. The tension between what residents really want and need, and how that’s labelled and marketed, vs what works from an investment and policy perspective will ultimately determine how ambitious and creative we can be. Personally, I feel societal needs are continually evolving and maybe we need to break some of the silo’s which have been formed to test the provision of resilient and responsive homes for all.
I think the notion of UK PBSA being a defined and distinct typology, as it has been for the last twenty-five years in the UK, could and should be challenged if the sector is to continue to evolve and ensure long-term sustainability.
Nick Riley is Managing Executive Director at Whittam Cox Architects, who are corporate supporters of LD Events. Hear more from Nick on 13th May at the Student Housing 2025 Conference in London. To book tickets please visit www.studenthousingevent.com