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.
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.
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