Baden-Württemberg Will Face Student Housing Shortage by 2012

During the coming years, there will be continuing pressure on the housing markets in the university cities of Baden-Württemberg. Especially in big university cities, mainly Stuttgart, Freiburg im Breisgau and Constance, the demand for student accommodation will far exceed the supply. These are the core findings of a study analysing the development of the market for student housing in Baden-Württemberg. The research was conducted by the Centre for European Economic Research (ZEW), Mannheim in cooperation with the University of Mannheim on behalf of the L-Bank, State Bank for Baden-Württemberg.

Due to changes in the German education system, two cohorts of students will finish upper secondary school and start university at the same time in 2012. This is one of the main reasons for the rising demand for student accommodation. Additionally, the suspension of mandatory military service in Germany will also lead to an increase in the number of first-year students. It can be assumed that the nearly 20,000 places for new students, additionally provided in Baden-Württemberg by 2012, will not be sufficient to offer all applicants their university place of choice.

The study shows that shortages in student housing and the related rise in costs due to the increasing numbers of students will mainly affect the big university cities. In Freiburg im Breisgau, Constance and Stuttgart the demand for student accommodation will exceed the supply by more than ten per cent between 2012 and 2014. Therefore, it can be assumed that rent levels, already high in these cities, will further increase. However, for Heidelberg, Karlsruhe, Mannheim and Ulm only a slight shortage in student accommodation is expected and for Tübingen even a balanced market for student housing is foreseen. At smaller university cities in Baden-Württemberg, such as Göppingen, Heilbronn or Offenburg, no shortages are expected for the coming years either.

For further information please contact

Prof. Dr. Felix Schindler, Phone +49 621/1235-378, E-mail schindler@zew.de