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Germany Enacts Student Housing Guarantee in Coalition Agreement

Union-SPD coalition commits to doubling housing program funding and raising BAföG allowances to combat rising rental costs and social inequality.

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Overview

  • The Union-SPD coalition has formally included a 'WG-Garantie' in its agreement to secure shared apartments for students and apprentices.
  • Federal funding for the 'Junges Wohnen' program will double from €500 million to €1 billion annually to expand affordable housing supply.
  • The BAföG housing allowance will increase to €440 in 2027/28, with plans to link it to basic social security levels starting in 2028/29.
  • Students currently spend an average of 54% of their income on rent, with WG rents reaching €421 nationwide and €508 in Hesse.
  • Student welfare organizations report increasing demand for social counseling as high rents force many into long commutes, parental homes, or emergency accommodations.