I actually don't disagree with what you said in your first sentence. I read the full article - it never mentioned anything about a landlord that forced these kids to rent the condo. I would assume it was the kids that chose to rent an expensive property and pack a ton of people in there to save money.It should cost that, but there should be limitations on the number of people occupying the dwelling. As mentioned prior, this is common practice in numerous college towns as a response to scumbag landlords over packing rental units.
It's called common decency
Quite honestly, I question if the article was even true. Neighbors and management would definitely notice if 12 people were living in a 1 bedroom.