German student rents rise 2.6% in 2026 as Munich flats reach 880 euros

Rising rental costs across German university cities

Quality-adjusted rents for student housing across Germany increased by an average of 2.6% in the first half of 2026 compared to the same period in 2025. According to the Studentenwohnreport 2026, published jointly by financial services provider MLP and the German Economic Institute (IW), annual student rent growth averaged 4.0% over the past three years. The study evaluated real estate data across 38 higher education locations, factoring in building age, equipment, and structural quality. Over the three-year timeframe, the steepest annual price increases occurred in Hamburg and Saarbrücken at 5.8% each, followed by Bochum at 5.5%.

Geographic disparities in accommodation prices

Rental costs show stark regional variations across German university hubs. Munich remains the most expensive location in the country, where a standard 30-square-meter model apartment costs approximately 880 euros per month warm, and a hypothetical shared-flat (WG) room costs roughly 850 euros. Berlin follows with standard flats averaging 725 euros, while Frankfurt ranks third at 721 euros, with Frankfurt shared-flat rooms averaging 674 euros. Other major centres including Cologne, Hamburg, and Heidelberg recorded average model flat rents between 700 and 720 euros. In contrast, Chemnitz offers the lowest prices nationwide, with model apartments averaging 280 euros and shared rooms costing around 220 euros.

In southern Germany, secondary Bavarian university hubs also maintain elevated price levels. A model apartment costs 620 euros in Würzburg, 584 euros in Regensburg, and 556 euros in Nuremberg. Shared-flat rooms in these cities cost 548 euros, 512 euros, and 509 euros, respectively. Darmstadt recorded a model apartment price of 599 euros and a shared room price of 492 euros. Michael Voigtländer, a real estate economist at the IW in Cologne, identified eastern Germany, Saarbrücken, and the Ruhr district as regions offering more accessible housing for students.

Housing segments and cost burdens on students

Price pressures varied considerably across different types of student accommodation during the first half of 2026. Small apartments under 40 square meters experienced the strongest price surge, climbing 3.5% year-on-year. Shared-flat room rents grew by 2.3%, while furnished temporary apartments recorded a 2.0% increase. Annual price index growth within individual cities also diverged, with Würzburg rising 3.2%, Regensburg increasing 3.0%, Nuremberg gaining 2.8%, and Munich rising 1.8%.

Housing represents a disproportionate financial obligation for students maintaining independent households. Data from the Federal Statistical Office for 2025 indicates that students spend an average of 54% of their available household income on housing expenses. This expenditure share is more than twice as high as the proportion paid by the general German population.

BAföG allowance gap and supply constraints

The statutory BAföG housing allowance of 380 euros per month is sufficient to cover the full warm rent of a standard 30-square-meter flat only in Chemnitz. The allowance is scheduled to rise to 440 euros per month in the summer semester of 2027. This adjustment was originally slated for the start of the winter semester, but experienced delays following coalition negotiations regarding budget financing.

Supply indicators in the report revealed contrasting local developments, with student housing supply expanding in Darmstadt while decreasing noticeably in Frankfurt. Although construction volume in popular university cities remains above average, it has not halted ongoing shortages. Long-term demographic forecasts in the report project that total student enrollments across Germany will continue to rise and remain above current levels through 2040.