Particularly high rent increases for students in Leipzig

Rents for students in Saxon cities are both particularly expensive and particularly affordable in a nationwide comparison. Leipzig is one of the cities with the highest rent increases in the past three years, according to the Student Housing Report 2025 published by financial services provider MLP and the German Economic Institute (IW). Rents there have risen by more than six percent per year. Looking at Germany as a whole, the report speaks of a 2.3 percent increase in rents for students.

Chemnitz with comparatively low rents

Chemnitz, on the other hand, is the cheapest place to live: According to the report, the rent increase there is 2.3 percent per year. A model student apartment costs around 300 euros and a room in a shared flat around 270 euros. While in Munich, for example, 380 euros is only enough for 15 square meters (net cold rent), students in Chemnitz can move into a 62-square-meter apartment for the same amount.

As in Chemnitz, the rent level for small apartments in Dresden is also below 10 euros per square meter. Together with Magdeburg, these are the last three university locations with these prices. According to the report, there were six last year. In general, university locations in eastern Germany (excluding Berlin) continue to be significantly cheaper than in western Germany.

Decline in the rate of state financial aid

The researchers also described the trends in student grants in Germany as "sobering". Despite a reform, the proportion of students receiving Bafög has fallen from 25 to 10 percent within 15 years. "We should actually be supporting more young people," said IW expert Michael Voigtländer.

The rise in rents in Germany was more moderate for the first time since the coronavirus pandemic. However, rising student numbers and low construction activity are "an explosive mix". "The situation on the housing market remains tense," said the IW expert.