Student rental sector debt tops PLN 2 billion as more students stay with parents

In brief

• Overdue debts of rental and property management firms reached PLN 2.018 billion in August.
• That figure was up from about PLN 1.9 billion a year earlier.
• 49 percent of students now live with family or friends, up from 41 percent a year ago.
• A room in a private student dormitory costs an average of PLN 2,121 per month.

Debt climbs in the rental sector

Overdue liabilities of firms that rent out and manage residential property reached PLN 2.018 billion in August, based on data from BIG InfoMonitor and the Credit Information Bureau (BIK) (Studencki boom nie napędza rynku. Miliardowe długi w sektorze najmu – Rzeczpospolita) (Długi branży najmu rosną. Decyzje studentów mają znaczenie dla całego rynku | pulshr.pl – pulshr.pl). A year earlier the figure stood at about PLN 1.9 billion.

Fewer students rent

The share of students living with relatives or acquaintances has risen to 49 percent, up from 41 percent a year ago, according to the eighth edition of the report "Students on the property market" prepared by the AMRON Centre and the Warsaw Institute of Banking (Studenci uciekają z najmu, długi firm ponad 2 mld zł – ilezametr.pl). Those who still rent pay more than ever before.

Private student housing

A room in a private student dormitory costs on average PLN 2,121 per month. Analysts link the shift in student housing choices to the pressure on the rental market, which the same data show is growing (BIG InfoMonitor: Student zostaje u rodziców, a właściciel liczy koszty. Rynek najmu pod coraz większą presją – prowly.com).

Why it matters for the market

A growing number of students staying at home reduces demand for rentals in university cities, while the companies still carrying unpaid obligations face higher costs and tighter cash flow. Developers and landlords relying on student demand are the most exposed group.