Why housing will decide Europe’s future as a study destination
The Student Living Monitor is an annual survey by The Class Foundation to explore the connection between student happiness, experience and living environments in Europe. Engaging thousands of participants across Europe, the survey offers valuable insights into students' experiences and provides recommendations for the sector.
ICEF Monitor’s latest findings signals a historic realignment in global higher education. For two decades, the “Big Four” – the United States, the United Kingdom, Australia, and Canada – dominated the international student landscape. But recent reports make it clear that the next decade belongs to a new “Big Ten.” Europe’s mainland markets, Spain, Portugal, the Netherlands, Austria, Germany, Italy, France, and the Nordics, along with a number of destinations in Asia, are gaining ground as students seek affordability, safety, and quality of life.
However, this growing attention to Europe comes with an Achilles’ heel: housing. Accommodation shortages and rent inflation are now the leading deterrents for mobility, even in otherwise attractive destinations.
Access is key
Findings from The Class Foundation’s The European Student Living Monitor 2023–25 confirm this warning with data drawn from more than 19,000 students across 16 countries. The study reveals that the type and availability of accommodation are the strongest predictors of student well-being. Students living in Purpose-Built Student Accommodation (PBSA) record an average Mental Health Index-5 (MHI-5) score of 58.4, compared with 56.2 for those in other housing, and just 51.1 for those living at home. When students remain with parents because they cannot find alternatives, their scores plunge to 44.3, and drop further to 42.6 when financial barriers prevent moving out.
(For reference, the MHI-5 serves as a globally recognised and extensively documented measure of well-being. It operates on a scale from 0 to 100, where scores above 60 indicate good mental health, reflecting optimal well-being.)
Equally telling is the question of choice. Students who obtained their first-choice accommodation report an MHI-5 score of 59.6, versus 54 for those who did not. The largest reason for missing out, cited by 51%, is unavailability. Another 23 percent were priced out. Together, these figures show that inadequate supply, not preference, is what constrains the European student experience.
Building community
More than bricks and rent, what defines a good student home is belonging. The student Living Monitor data shows that students engaged in residence community life record an MHI-5 of 62.3, while those who do don’t score 6 points lower. That difference is not architectural — it’s human. Communal lounges, green courtyards, and shared study spaces are where Europe’s future talent finds connection, purpose, and resilience. Designing for community, therefore, is designing for well-being. Conversely, loneliness exerts the single largest negative effect observed across all indicators, which impacts over 40% of students: students affected by loneliness score 49.9 on the MHI-5, versus 63.7 for those who are not — a gap of 13.8 points.
Fragile finances
Yet, two-thirds of students describe their finances as fragile, and 56.6% lack access or awareness of mental-health support.
Further, behind Europe’s rise lies a fragile reality: two in three students are struggling getting by financially, and over 56% don’t know where access or to turn for mental-health support. The promise of international study loses its shine when basic security – a financial safety and someone to talk to – is missing.
Start with housing
The data make one conclusion unavoidable: Europe’s rise as a global study hub will only be sustainable if housing is recognised and treated as essential infrastructure. Expanding PBSA supply, aligning planning and zoning incentives, and embedding well-being into design are no longer optional — they are structural imperatives.
Ultimately, Europe’s success will rest on three pillars within the housing ecosystem: affordability and availability, ensuring every student can find a home; community, creating spaces that foster belonging and connection; and support, providing accessible financial and mental-health resources that help students thrive.
If the 2020s marked the shift from the Big Four to the Big Ten, the 2030s will decide which destinations truly built a foundation for success. For Europe, that foundation begins — and could falter — with housing.
The Class Foundation, established in 2011, operates as a partner-based non-profit organisation with the goal of advancing the professionalism and understanding of student housing across Europe. Serving as the largest European student living eco-system, its mission centres on being the foremost think tank dedicated to the realm of student housing and experience.
