Its quite refreshing to see a different perspective on housing, as it isn't a fungible commodity like you suggest, where the dollar is the ultimate arbiter. People build their lives around where they live and make deep investments in their community. Some artificial "free" market that is terribly dysfunctional (and irrational) like we have here in the US is a poor choice when most of your society isn't landed gentry.
In Europe? Yes it does. If you're a longtime renter in Vienna for example it's almost impossible for the landlord to raise your rent or get you evicted. There's some decades-old contracts with renters paying 200-300€ for a 100m² apartment. These can even be passed on to family.
It comes down to what you think money is for. In Europe the general consensus is that there are constraints the effects money should have.
Not to be "that guy" with the unpopular opinion here, but I'm not even sure if the landlord can even cover the costs for the apartment from what she's paying.
I disagree. I also disagree that living somewhere gives you a special-citizen's pass. It's somewhere in between. You want to give room for the market, but you also want to consider cities are a function of their neighbourhoods, their communities, the networks, the people, the bonds, shared history, local culture etc. You can't just break up an existing community for money. You need to find middle ground, let the market operate while trying to work to keep the community intact.
I mean, I know it's really easy (and cheesy) to say these words. Finding that balance is really hard, and at some point there is a trade-off between government intervention in the market or letting (sometimes vulnerable) people fend for themselves. And that isn't easy.
That having been said, $300 a month for a $60k apartment isn't little by European standards. That's a 6% rental yield, it isn't low.
That's just not true in most of Europe. Having lived in several countries now, the laws are usually very tenant oriented: after some time landlords cannot terminate leases in most conditions and the yearly increases are regulated.
> Lustig pays $300 a month from her $800 disability check for the 570-square-foot apartment, located in a newly fashionable district only a mile from Tiergarten, a leafy city park that's one of Berlin's most popular.
$300 per month for even a small apartment in a good district is incredibly cheap. Why on Earth would you expect to be able to afford such a place on a disability check?