This is long and a huge hurdle so there's a TLDR at the bottom.

We are all pretty much 20 years old. And my friend who I met a year ago is choosing his girlfriend over me and another friend of ours. We were planning all year long for the 4 of us to live in one house together. Then all of that has changed since the two broke up about a week ago. They've been together since highschool and she was his first guy she's slept with. I come back into the city (I live in a much smaller town) and he told me that his girlfriend is demanding they live on their own because she doesn't want roommates. This was never the deal for the past 5 months and is only changing because my friend doesn't have the balls to tell her no. He was asking if he should break up with her and won't do it. Now my other friend is going to be homeless unless I step in and just get a place with him. Is it wrong for me to not want to be friends with him after this?

TLDR: we all had plans to move in together the 4 of us. Friend's GF said no after a break up. Now is holding my friends balls hostage and he isn't saying no to demands that were never apart of the plan. How to handle?

Post edit: they broke up for a couple days and are currently back together. He was considering breaking up with her prior to getting back into the relationship.