RIVERSIDE – (INT) – A new study by computer scientists at UC Riverside found home prices are more volatile around hospitals and colleges, making them risky places to invest.

The study shows colleges and hospitals do affect home prices and rents, but not always positively. Prices also rise and fall faster around these institutions, increasing the risk for investors. The results confirm universities and hospitals are “opportunity hubs” with jobs, high wages, and other amenities that can increase real estate value, while other, less well understood factors can decrease price or lead to market volatility.

“One of the questions we wanted to answer is if the presence of a university or hospital would have a stabilizing effect on prices in the event of a crisis like the 2008 housing market crash,” said Vagelis Hristidis, a professor of computer science and engineering. “What we found is actually the opposite. Investing close to a university or hospital may not protect you from price volatility.”

Story Date: February 28, 2019