Impact of Universities on urban and regional economies

This entry examines the role that universities play in urban and regional economies and the pressures they face to expand in order to remain internationally competitive. It then sheds light on how universities' expansion plans can have adverse localized price effects. It presents several lessons for urban and regional planning authorities to consider. First, the potential of universities to generate localized economic growth should not be underestimated. If surrounding housing supply remains inelastic, universities' expansion plans will create further upward pressure on housing prices. Second, the strategy of a university to concentrate its resources in particular urban areas, while attractive to certain businesses, hold potential downsides, including putting pressure on existing social and urban infrastructure. It is therefore important that planning authorities work closely together to ensure that both housing stock and associated infrastructure expand to mitigate any adverse impacts from a university's growth strategies. The entry concludes with a word of caution. The fallout of the global pandemic has left many universities facing major organizational restructuring, casting doubt on their ability, and need, to expand their physical footprints.