SU rarely covers housing expenses in the major student cities

When thousands of young people begin higher education each year, they simultaneously start the search for accommodation close to their studies. However, for many, it is a financial challenge to find housing that can be paid for with the student grant (SU). This is shown by a new analysis from Finance Denmark.

In the major student cities – Copenhagen, Frederiksberg, Odense, Aarhus, and Aalborg – the expenses for an average 50-square-meter condominium exceed the monthly student grant rate for students living away from home by 7,086 Danish kroner before tax. In Aalborg, the expense is closest to the student grant, at around 7,600 kroner per month, while a similar property in Frederiksberg can cost up to 15,000 kroner.

Private rental apartments can be a cheaper alternative, especially west of the Great Belt. In Aalborg, the rent for a newly built private rental apartment of 50 square meters is just under 5,000 kroner, while in Copenhagen and Frederiksberg, the price is around 8,100 kroner. Another option is public housing or student residences, but the waiting lists can be long – especially close to educational institutions.

“For many students, it can be difficult to find housing that is affordable and also close to their studies. Even though rents in some places are lower than the student grant, there is often fierce competition for cheap rental apartments. Many therefore hope for public or student housing, but waiting times are often long,” says Peter Jayaswal, Deputy Director at Finance Denmark.

At the same time, it has also become more difficult for students to buy a condominium. The supply of smaller condominiums has decreased, and prices have risen in several of the student cities. Nationwide, there are currently only 297 condominiums up to 50 square meters for sale in the five student cities – 23 fewer than this time last year. In Copenhagen, there are 97, only seven in Frederiksberg, while Aarhus has 127, Aalborg 46, and Odense 20 apartments for sale in that category.

Condominium prices have risen in Copenhagen, Frederiksberg, and Odense, but fallen in Aarhus and Aalborg. In Copenhagen and Frederiksberg, a 50-square-meter apartment now costs an average of 3.7 million kroner – an increase of approximately 420,000 and 354,000 kroner respectively since last year. In Odense, the price has increased by around 51,000 kroner to 1.3 million. On the other hand, prices have fallen in Aarhus and Aalborg by 76,000 and 61,000 kroner respectively.

According to Peter Jayaswal, there is a high demand for small properties, not only among students but also among singles, first-time buyers, and the elderly. He suggests that more small properties should be built to meet the demand – including by removing local requirements for minimum sizes in new construction.

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