Student housing market 2026: Rents will continue to rise by an average of 2.6 percent

There are no signs of relief for students on the German housing market: the quality-adjusted rents for student housing rose by an average of 2.6 percent in the first half of 2026 compared to the same period last year, as shown in the 2026 student housing report from the financial service provider MLP and the German Economic Institute (IW).

Over three years, the increase averaged 4.0 percent per year. Small apartments became the most expensive: apartments under 40 square meters increased by 3.5 percent within a year, shared apartment rents rose by 2.3 percent, furnished temporary apartments by 2.0 percent.

Munich remains by far the front runner

According to the report, there are big differences in rental costs at the individual university locations. This was shown by examples using a student model apartment with 30 square meters and a hypothetical shared room with 20 square meters.

The model apartment in Munich is also the most expensive this year at around 880 euros per month, followed by Berlin, Frankfurt and Cologne as well as Hamburg and Heidelberg at around 700 to 720 euros. Chemnitz is the cheapest at around 280 euros. The model shared room also ranges from around 850 euros in Munich to around 220 euros in Chemnitz.

According to the information, the highest increases in the last three years were recorded in Hamburg and Saarbrücken, each with 5.8 percent, and Bochum with 5.5 percent per year. With the Bafög housing allowance of 380 euros, the rent for the student 30 square meter model apartment can only be completely covered in Chemnitz.

An increase in the flat-rate housing allowance is due to come in 2027

The flat-rate housing allowance for Bafög recipients who do not live with their parents is set to increase from 380 euros to 440 euros for the 2027 summer semester. The increase was originally planned for the coming winter semester. However, the reform was delayed because the coalition was unable to agree on its financing for a long time.

Report: Pressure on the housing market will increase again

This year's special evaluation predicts that after a temporary slight decline, the number of students will continue to rise again and will be above current levels by 2040. “For many university locations, this means that the pressure on the housing markets will increase again in the future.”

“If students increasingly have to choose their place of study based on affordable housing instead of the best professional prospects, this will be a problem for Germany as an educational and business location,” says Uwe Schroeder-Wildberg, CEO of MLP. High housing costs should not determine which educational paths are available to young people.

For the first time, the MLP student housing report examined construction activity at the 38 university locations. There is still an above-average amount of construction going on at popular university locations. In many places, this is still not enough to alleviate the housing shortage. “At the same time, construction activity has decreased in recent years at around two thirds of the locations examined – sometimes significantly,” the report says. The consequences of the collapse in building permits since 2022 are becoming increasingly visible. There is much to suggest that housing supply will not be able to keep up with demand in the future.