Kyoto University was established at the beginning of the last century, originally transforming a royal manor left from the previous dynasty, hence its location was excellent, right at the heart of Kyoto at that time.
After the new government was established, Kyoto's expansion also centered around the old city and then slowly expanded outward in all directions. Even today, although Kyoto has expanded dozens of times larger than when Kyoto University was first established, Kyoto University still occupies a very important location in Kyoto!
The land at this location is so valuable that saying it's worth its weight in gold might still be an understatement! Moreover, in order to maintain the cultural charm, the Kyoto government strictly prohibits the construction of modern houses in the area and insists on preserving the old Kyoto style, which is why there are hardly any accommodations nearby.