Intro to Econ: Fifth Lecture – Student Accommodation

Many university towns have problems with affordable student accommodation. In Graz things are not too bad, I think, but I guess things could also be better. Let me make the following policy proposal and let’s discuss whether we think this is a good idea. I suggest a law that states that students who rent an apartment or a room are not allowed to be charged more than €2 per square meter. At the moment gross rent prices in Graz are probably around €10 per square meter (if not more). Do you think this policy would have the desired effect?

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