Housing prices in Germany, including shared apartments (Wohnungsgemeinschaft, WG), continue to rise, with the average cost of renting a room now at 500 euros, according to a recent study by the Moses Mendelssohn Institute. This marks a 4% increase compared to last year.
Munich remains the most expensive city, where students pay an average of 800 euros for a room. Other major cities also see high rental prices: 650 euros in Berlin, 610 euros in Hamburg, and 583 euros in Cologne. In contrast, the eastern part of Germany and smaller cities offer more affordable options. The five cheapest cities for renting a room include Chemnitz (265 euros), Cottbus (287 euros), and Dresden (350 euros).
The rising costs have been particularly challenging for students, many of whom rely on BAföG scholarships (interest-free state loans for students), which often fall short of covering housing expenses. The standard housing allowance is only 380 euros, leaving students with limited options. Student associations are calling for an increase in scholarships, highlighting how housing prices are influencing students’ university choices, which they describe as a “new form of social selection.”
Matthias Anbül, president of the German Student Support Association, emphasized that students from low-income families are increasingly forced to choose their place of study based on rental costs rather than their academic interests.
