JRFM, Vol. 16, Pages 167: The Effect of Proximity to Universities on House Prices after the COVID Outbreak

JRFM, Vol. 16, Pages 167: The Effect of Proximity to Universities on House Prices after the COVID Outbreak

Journal of Risk and Financial Management doi: 10.3390/jrfm16030167

Authors: Bingbing Wang

COVID-19 has made virtual interactions an integral part of learning modes. This made it possible for college students to live further away from school than before, which might change the house price neighboring universities. This article studies the effect of proximity to school on house prices after the COVID-19 outbreak using a non-parametric difference-in-differences approach with property-level transaction data surrounding 128 universities in the U.S. The results show that house prices within 0.5 miles of universities experienced a maximum decrease of approximately 7% after three months of the outbreak. The effects vary for universities that implemented different teaching modes of in-person, hybrid, and online. Since house prices are important indicators for local economic conditions, the results help local homeowners, investors, and governments in their decision-making processes.