Real Estate Windfalls from Delaying the Fall 2020 Semester
The Harvard Crimson has published an interesting piece that debates the merits of another Zoom semester in fall 2020. The author endorses delaying this semester until Spring 2021.
Suppose that Harvard follows this plan. Current rising Seniors (who should have graduated in May 2021) will demand dorm rooms on campus in Fall 2021 as new Freshman show up. Given the finite supply of dorm rooms, this “excess demand” means that real estate prices in a vicinity of campuses will rise to clear the market. Owners of these properties will gain a windfall as undergraduates look for housing nearby. Graduate students will experience a reduction in their living standards because their stipends are unlikely to rise.
Source: http://greeneconomics.blogspot.com/2020/04/real-estate-windfalls-from-delaying.html
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