Students looking for an apartment or a room in a shared flat have to budget more and more money for it. The tense situation in university cities could also cost Germany growth.
According to a study, students are having to dig deeper into their pockets for newly rented rooms in shared apartments or flats. Last year, the so-called asking rents rose by an average of 5.1 percent, according to the current student housing report from the financial services provider MLP and the German Economic Institute (IW).
For the analysis, rents in 38 German university towns that were advertised on major real estate portals and in newspapers in the second quarter were analyzed. With the exception of Heidelberg, basic rents rose in all locations. This was most pronounced in Berlin (plus 9.4 percent) and Leipzig (plus 9.3 percent). The smallest price increases were in Würzburg and Tübingen (both 1.6 percent).
Student housing in Munich is the most expensive
To make comparisons easier, the researchers calculated prices for a 30 square meter model apartment near the university. New student tenants have to pay the most in Munich: the model apartment there costs 807 euros per month including heating. This is followed by Berlin (678 euros) and Frankfurt am Main and Stuttgart (both 674 euros). The cheapest places for students to live are Chemnitz (263 euros) and Magdeburg (333 euros).
A similar picture emerges for a 20 square meter sample shared room: In this case too, students in the Bavarian capital have to pay the most. Specifically, 588 euros. This is followed by Konstanz (558 euros), Hamburg (542 euros) and Frankfurt (535 euros).
Great competition for less living space
The development is therefore due to the difficult situation on the housing market. Buying a home has become unaffordable for many people and construction activity has declined sharply due to high interest rates. The result: More and more people are flocking to the already tight rental housing market and competing with students. In addition, the supply in 29 of the 38 locations has fallen significantly – partly because fewer people are currently moving. This pressure is leading to price increases.
The researchers also increasingly see the rising costs as a risk factor for Germany as a business location. The country is dependent on well-trained academics, and given the shortage of skilled workers, this also applies to people from abroad. “Without the chance of access to housing, significantly fewer international students will come to Germany in the long term,” wrote IW real estate expert Michael Voigtländer in a foreword to the reporter. The problems could ultimately cost growth.
Source: Stern
