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For decades, the Erasmus+ program has been a rite of passage for young Europeans—a chance to bridge cultures and master new languages. But in 2026, a new and invisible barrier is rising: a locked door. As rent prices in university hubs reach historic highs, the “Erasmus generation” is increasingly becoming the “stay-at-home generation”.

The Reality of the “Luxury” Exchange

In cities like Amsterdam, the average monthly rent for a private room has reached €1,150, while Paris averages €961. For many, the maths simply does not add up.

The typical Erasmus+ grant for 2026 often falls short of these costs, leaving a significant “funding gap” before a student even pays for food or transport. Research indicates that 42% of young people at risk of poverty now spend over 40% of their income just on housing.

The European Students’ Union (ESU) specifically states that the housing emergency “excludes thousands of young people and students from higher education” and risks making study mobility a “privilege of the few.”. Desperation has also led to a rise in malpractice; roughly 25% of exchange students report being targeted by rental scams during their search.

A New Map of Inequality

The housing crisis is fundamentally changing where students go. We are seeing a shift toward more affordable “hubs”:

  • The Affordable Alternatives: Cities like Budapest (€370) and Athens (€400) are seeing a surge in popularity as they allow students to live comfortably within their grant limits.

  • The “Stay-at-Home” Trend: In countries like the Netherlands, the shortage of rooms (currently over 20,000) is forcing students to remain in their parental homes rather than experience independent living.

Beyond the Problem: The 2026 Solutions

2026 is proving to be a turning point for European housing policy.

  • The European Plan for Affordable Housing This plan, which was introduced in late 2025, classifies students as a high-risk group. Through the InvestEU program, it seeks to mobilise investment specifically for student housing and offers a “housing simplification package” to reduce the red tape that impedes the timely construction of new dorms.
  •  National Success Stories: Portugal’s 18,000 Beds Portugal is leading the way with its National Plan for Student Housing (PNAES). By June 2026, the project will deliver 18,000 affordable beds. Crucially, these aren’t left to the market; rents are contractually capped, with prices starting as low as €91 per month for grant-holders.
  •  The 2026 EU Housing Summit Later this year, the first-ever EU Housing Summit will bring together policymakers and student unions to discuss “rent-indexing” grants—adjusting Erasmus+ funding to reflect the actual cost of a bed in a specific city, rather than a flat country-wide rate.

The Verdict

The Erasmus dream isn’t dead, but it is under pressure. If the program is to remain a tool for social mobility rather than a luxury for the few, housing must be treated as “essential social infrastructure”.

As the EU rolls out its new Affordable Housing Plan this year, the goal is clear: ensuring that the only thing a student has to worry about when moving abroad is passing their exams—not whether they can afford a roof over their head.

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