Student Accommodation Market Failure

Flashcards about student accommodation market failure.

By what percentage did private rental supply fail to match the increase in student numbers from 2015-2021?

29%

Besides university accommodation, where has the highest percentage of people been living?

Private rental

What are some contributing factors to people choosing private rentals?

The cost of living and an increase in tuition fees paired with decreasing loans.

By what percentage did the UK's weekly average rent rise?

39%

Which city holds the most expensive weekly rent?

Brighton

What is the ultimate impact on the market for accommodation as the number of students attending university increases?

Great pressure for student accommodation.

What type of pressure do universities face as the demand for housing increases?

Pressure to build more housing with the limited availability for substitute goods, e.g., private rental.

What happens to prices when there is a lack of student accommodation?

Prices are more than likely to rise.

What is the elasticity of student accommodation?

Highly inelastic

What might some universities have to ask students to do?

Live at home

What is one potential negative consequence of students having to live at home?

It could disincentivize people from going to university.

What impact might this have on students who need to travel to go to uni?

It also makes travelling big distances to go to uni less plausible as travel costs would be too great.