Urgent need for cheaper student accommodation highlighted
In Germany, the shortage of affordable housing for students in university cities has become an urgent social issue. This concern was highlighted by Anbuhl, who warned of a potential new form of social selection, where only those who can afford the rent can study.
The situation is particularly critical in cities like Munich, where 11,500 students are on the waiting list for dormitory places, the most of any city mentioned. Aachen follows closely with nearly 7,000 students on the waiting list, while Cologne, Hamburg, and Berlin each have around 1,500, 2,900, and 5,000 students, respectively, waiting for dormitory places.
Anbuhl advocated for the federal-state program "Young Living" to be permanently established and vigorously implemented by all federal states to address this issue. He emphasized the need for more affordable housing for students.
To address this pressing issue, Germany is taking multiple steps to expand the supply of affordable student housing and diversify housing options. One such initiative is the development of Micro-Living and Purpose-Built Student Accommodation (PBSA) by PGIM Real Estate. Their OmniLiv platform aims to develop and redevelop micro-living residential properties in Germany’s top cities, providing affordable, flexible, and community-oriented living spaces in urban centers.
Another key solution is the expansion of student dormitories and subsidized housing. Student dormitories, which typically offer the most affordable options, remain a fundamental part of German affordable student housing, especially in university cities.
In addition, many students opt for shared flats or private rentals, which provide a balance between privacy and affordability. While private studios or one-bedroom flats remain pricier, they are sought after for independence, especially in cities like Munich and Frankfurt.
The German residential real estate market also shows growing investor enthusiasm, which could translate into more developments and options for student housing. Despite the total transaction volume for student housing and micro-apartments being relatively low, the overall market remains strong and stable.
Lastly, higher education institutions are increasingly leveraging digital tools to manage student housing demand and feedback to improve services and address needs related to convenience, mental health, and independence.
Taken together, these efforts reflect a multi-pronged approach that combines new construction (especially micro-living models), state support for dormitories, diversification of rental options, and tech-driven management to alleviate the shortage and rising costs of student housing in Germany’s competitive urban markets.
Personal-finance concerns for students in university cities have escalated due to the limited availability of affordable housing, a problem exacerbated by the shortage of dormitory places in cities like Munich and Aachen. Education-and-self-development institutes in Germany are keen on diversifying housing options to accommodate students, such as through the development of Micro-Living and Purpose-Built Student Accommodation (PBSA) by PGIM Real Estate, which aims to provide affordable living spaces in urban centers.
