Students in Germany: Housing is becoming a financial nightmare!

Students in Germany: Housing is becoming a financial nightmare!

Students in Germany face a massive challenge: on average, they spend over half of their income on housing costs. According to a report by Stern, on average 53% of income goes towards rent, with students living alone having to pay as much as 54%. This burden remains well above the recommended limit of 30% and the housing cost burden of the entire German population of 25%.

What is particularly worrying is the fact that the required rate for the housing cost subsidy as part of the federal training grant (BAföG) is 380 euros, while the average rents in many cities are already significantly higher. In 2025, the average housing costs will be 489 euros, which means a gap of over 100 euros per month that students will have to cover themselves.

Regional discrepancy and educational injustice

The problem does not only affect expensive large cities such as Munich, Stuttgart, Berlin and Hamburg. Even in lesser-known cities, living space is becoming increasingly scarce and expensive. For students who need to be realistic about where they can start their studies, the choice is severely limited by the need to go through certain admissions processes. This restriction increases injustice by placing students from less well-off backgrounds at particular disadvantage.

There are long waiting lists for dormitories everywhere in Germany, while many students are forced to look for adequate living space on the free housing market. A recently published report by Homeplaza underlines that BAföG, which is intended to create equal opportunities, is often not enough in reality.

Financial stress and dropping out of studies

The high rent burden means that many students have to take on at least one job alongside their studies. These part-time jobs, which often require more than 20 hours per week, limit their academic performance and increase stress. Experts warn of the consequences of this financial pressure situation, which is reflected in delayed progress in studies and frequent dropouts, especially in low-income households.

The current BAföG regulation does not take regional differences in the cost of living into account. For example, the current rental fee is 360 euros for students who do not live with their parents, which represents an enormous discrepancy in cities like Munich, where shared rooms cost an average of 680 euros. There is a gap of over 300 euros between the BAföG maximum rate and the actual rental prices.

Need for action and demands for reform

In view of this alarming situation, experts are calling for a comprehensive reform of the BAföG system. In particular, it is pointed out that regional rent surcharges and an annual update of the flat rates are necessary to take the reality of the rents into account. The public discussion about these issues is gaining momentum, but the federal government has so far remained unmoved when it comes to flat-rate rental costs.

The program for young living, which promotes the expansion and construction of dormitories, could bring relief, but short-term solutions must be found to ensure that education is not made dependent on where you live. Educational equity requires an environment in which financial burdens do not limit access to education.

Overall, it is clear that the challenges facing students in Germany not only involve structural problems, but also reveal profound social inequalities. It remains to be seen whether the political landscape is ready to address these issues and find sustainable solutions.

Further information can be found here: stern.de and homeplaza.de.