Tucked away in the grounds of a former US military hospital, on the outskirts of the German city of Heidelberg, stands a huge wooden box. Complete with windows and furniture, this 14 sq m structure looks, at first glance, more garden shed than home.

But this is the prototype for a four-storey student dormitory – an attempt to provide relief for young people caught up in Germany’s housing shortage.

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Like many cities around the world, Heidelberg is struggling to house a rapid influx of young professionals and students. This has created a lucrative rental market and driven a housing shortage. Since 2010, rents in the university town have increased by almost a quarter. For students, who often live in shared apartments, prices average at around 437 euros ($492) per month.