Student housing costs persistently escalate, remain high
As the new academic year approaches, students in Portugal are facing a significant challenge: the high cost of student accommodation. The average price of a student room has surpassed €400 per month, a departure from the past four years' price stability [2].
Despite an increase in the number of student rooms, this does not guarantee a halt in the rising prices. In fact, rental prices are rising faster than supply can bring them down, exacerbated by strong demand and limited affordable public housing options [2]. This trend is partly due to broader regional and continental housing market trends where construction costs are soaring sharply and housing shortages persist despite new builds [1].
In Europe, student accommodation construction averages £126,866 per bed, pushing rents higher, with many students spending over half their budgets just on housing [1]. Cities with high demand, scarce land, and long construction timelines—like Lisbon in Portugal—face particular pressure to meet the needs of increasing and diversifying student populations, including international students.
The intensified competition, paired with limited public housing stock, means increased supply of private rooms does not automatically reduce rents. This situation is concerning, especially when compared to previous years. The current average price of €415 per month is higher than any previous year's average [2].
The high cost of student accommodation is a major concern for students during the application process. Renting a house is already financially challenging for workers in the country, and the increasing costs are complicating the situation further.
Student organizations have called for more publicly funded or cooperative student housing to address this issue. The call is timely, as broader inflationary pressures on rents and housing costs across Europe compound the problem [3]. Rent prices are rising on average 12.5% between 2020 and 2025, and housing prices are up 27.3% in the same period [3].
In conclusion, rises in construction and housing market costs drive rents higher even as supply grows. Demand outstrips supply, especially in popular student cities like Lisbon, pushing prices above €400. Insufficient public or affordable student housing limits renters' choices and maintains high prices. Broader inflationary pressures on rents and housing costs across Europe compound the issue. These factors combine to create a student housing cost crisis marked by increasing rents despite more rooms being available, causing concern about affordability and education access for students [2][1][3].
The escalating costs of construction and housing markets in Europe lead to a rise in rental prices, such as ones in Lisbon, which surpass €400 per month for student accommodations. Consequently, the high cost of home-and-garden living becomes a significant burden in students' lifestyle choices during the application process.
