The government still has a lot of power and it now wants to keep college students under easier management or control, by banning living off-campus. Translated from the Beijing News:
After cutting some slack on college students living off-campus in 2005, China’s Ministry of Education resumed its unswavering authority, affirming that “in principle living off-campus is not allowed,” which was set forth in a 2004 ministry regulation. For those students who have special circumstances to live off-campus, they have to do certain registration paperwork.
A Ministry official also advised against dividing up students into different kinds of accommodation based on their economic backgrounds. New students from this year are encouraged to be put into clusters of rooms according to their classes (presumably for better management). [Full Text in Chinese]
A Sina.com survey registers split opinion on off-campus accommodation ban (in Chinese)