Universities play a crucial role in shaping local economies by driving employment, fostering business growth, attracting investment, and enhancing the overall quality of life in their host communities. Their economic impact extends beyond direct spending to include long-term benefits such as workforce development, innovation, and cultural enrichment. Below, we explore the key ways in which a university influences a local economy.
- Direct Employment and Spending
A university is often one of the largest employers in a local area, providing jobs for faculty, administrative staff, maintenance workers, and other professionals. These employees spend their salaries on housing, groceries, transportation, and entertainment, injecting money into the local economy. Additionally, universities spend significant amounts on construction, utilities, and local services, further stimulating business activity.
Students also contribute to local spending. Many bring outside money into the community through tuition payments, federal aid, and personal expenditures on rent, food, and retail. A large student population can sustain businesses such as bookstores, coffee shops, restaurants, and housing providers.
- Business Development and Entrepreneurship
Universities often serve as hubs for innovation and entrepreneurship. Research institutions, business incubators, and technology transfer offices help commercialize academic research, leading to startup formation and industry partnerships. For example, Stanford University's role in Silicon Valley's growth demonstrates how academic institutions can spur regional economic development.
Local businesses benefit from university partnerships, including procurement contracts for supplies, catering, and maintenance services. Furthermore, universities attract conferences, sporting events, and cultural activities that generate tourism revenue for hotels, restaurants, and transportation services.
- Human Capital and Workforce Development
A well-educated workforce is essential for economic competitiveness. Universities produce graduates with specialized skills that attract high-paying industries, such as technology, healthcare, and finance. Many graduates remain in the area, filling critical roles in local businesses and government.
Universities also offer continuing education programs, professional certifications, and workforce training initiatives that help upskill local employees, making the regional labor market more adaptable to industry changes.
- Real Estate and Infrastructure Growth
The presence of a university can drive demand for housing, both from students and faculty. This often leads to the development of new apartments, condominiums, and mixed-use commercial spaces. Over time, universities contribute to urban revitalization by investing in campus expansions, public transit improvements, and community amenities like libraries and parks.
However, rapid growth can also lead to challenges, such as rising housing costs and gentrification, which may displace long-term residents. Local governments must balance economic expansion with policies that ensure affordable housing and equitable development.
- Cultural and Social Contributions
Beyond economics, universities enrich local culture through arts programs, public lectures, and athletic events. These activities improve residents' quality of life, making the area more attractive to businesses and skilled workers. A vibrant university town often sees increased property values and a more diverse, engaged community.
Conclusion
The economic impact of a university on a local economy is multifaceted, encompassing job creation, business growth, talent development, and infrastructure investment. While challenges such as affordability and displacement must be managed, the long-term benefits-including innovation, increased tax revenues, and a more dynamic workforce-make universities vital engines of regional prosperity. By fostering collaboration between academia, government, and industry, communities can maximize these advantages while ensuring inclusive growth.
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Bel-Rea Institute of Animal Technology |
Concorde Career College-Aurora |
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Arizona College of Nursing-Aurora |
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Platt College-Aurora |
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Pima Medical Institute-Aurora |
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Pima Medical Institute-Denver |
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Denver Seminary |
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Northeastern Junior College |
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Morgan Community College |
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Community College of Aurora |
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Colorado State University Global |
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Arapahoe Community College |
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Front Range Community College |
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University of Colorado Denver/Anschutz Medical Campus |
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Percent admitted - total Admissions yield - total
Full-time enrollment Part-time enrollment
Total enrollment % White % Black % Asian % Hispanic % Native Hawaiian or Other Pacific Islander % American Indian or Alaska Native % two or more races % Race/ethnicity unknown % U.S. Nonresident
Undergraduate enrollment % under 18 % 18-24 % 25-64 % over 65
Graduate enrollment
Student-to-faculty ratio
Tuition and fees, 2020-21 2021-22 2022-23 2023-24
Total price for In-district students living on campus 2023-24 In-state students living on campus 2023-24 Out-of-state students living on campus 2023-24
In-district students living off campus (no family) 2023-24 In-state students living off campus (no family) 2023-24 Out-of-state students living off campus (no family) 2023-24
In-district students living off campus (w/ family) 2023-24 In-state students living off campus (w/ family) 2023-24 Out-of-state students living off campus (w/ family) 2023-24
Associate's degree Bachelor's degree Master's degree Doctor's degree - research/scholarship Doctor's degree - professional practice Doctor's degree - other
Instructional FTE Research FTE Public Service FTE Librarians, Curators, and Archivists FTE Student/Academic Affairs and Other Education Services FTE Management FTE Business and Financial Operations FTE Computer, Engineering, and Science FTE Community Service, Legal, Arts, and Media FTE Healthcare FTE Service FTE Sales and Related FTE Office and Administrative Support FTE Natural Resources, Construction, and Maintenance FTE Production, Transportation, and Material Moving FTE Total FTE staff
|
78
14
12,338
11,071
23,409
49
5
9
21
0
0
5
2
8
14,027
21
60
19
0
9,382
16
9,401
9,384
9,562
10,017
32,823
32,823
51,015
32,582
32,582
50,774
17,903
17,903
36,095
0
2,559
2,365
188
527
0
5,548
914
182
41
379
1,516
642
2,248
124
1,830
189
0
441
123
40
14,217 |
NA
NA
4,437
16,659
21,096
58
2
4
26
0
1
4
4
2
21,096
41
38
21
0
0
22
4,032
4,032
4,126
4,740
NA
NA
NA
28,765
28,765
40,999
13,915
13,915
26,149
1,920
17
0
0
0
0
497
0
0
6
103
61
87
35
69
0
34
3
91
11
2
999 |
NA
NA
2,524
11,454
13,978
64
3
4
16
0
0
5
6
1
13,978
49
33
18
0
0
25
4,027
4,027
4,080
4,308
NA
NA
NA
27,613
27,613
39,847
12,763
12,763
24,997
847
33
0
0
0
0
253
0
0
3
78
59
38
18
0
0
22
0
38
8
1
518 |
93
82
2,048
7,459
9,507
56
9
5
17
0
0
2
10
1
6,568
0
16
83
0
2,939
25
8,400
8,400
8,400
8,400
NA
NA
NA
23,401
23,401
23,401
10,201
10,201
10,201
0
1,718
1,333
0
0
0
191
0
0
2
104
35
7
9
0
0
0
0
15
0
0
363 |
NA
NA
1,350
7,334
8,684
26
16
6
33
0
0
5
3
9
8,684
59
25
16
0
0
13
3,940
3,947
4,030
4,030
NA
NA
NA
26,595
26,595
38,245
11,745
11,745
23,395
629
NA
NA
NA
NA
NA
109
0
0
3
68
52
13
10
0
0
8
0
22
5
0
290 |
NA
NA
311
1,195
1,506
54
5
1
36
0
0
2
2
0
1,506
48
31
20
0
0
12
3,850
3,852
3,930
4,127
NA
NA
NA
26,728
26,728
38,961
11,878
11,878
24,111
129
15
0
0
0
0
56
0
0
1
19
22
5
3
0
0
4
0
5
1
0
116 |
NA
NA
685
817
1,502
73
2
0
15
0
0
2
3
4
1,502
19
49
31
1
0
19
5,288
5,243
5,345
5,582
21,059
21,059
23,522
28,147
28,147
30,610
13,468
13,468
15,931
247
NA
NA
NA
NA
NA
50
0
0
1
7
10
21
3
7
0
16
1
11
5
0
132 |
NA
NA
200
637
837
69
8
8
1
0
0
3
8
3
0
NA
NA
NA
NA
837
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
0
0
138
0
0
4
51
0
0
7
8
21
4
5
0
2
0
2
28
0
0
128 |
NA
NA
764
0
764
37
5
3
48
0
0
7
0
0
764
0
52
47
0
0
25
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
172
NA
NA
NA
NA
NA
40
0
0
0
13
3
0
0
0
0
0
0
6
2
0
64 |
NA
NA
290
0
290
26
17
3
41
0
1
12
0
0
290
0
61
39
0
0
25
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
18
NA
NA
NA
NA
NA
14
0
0
0
5
2
0
0
0
0
0
0
4
0
0
25 |
36
100
215
0
215
50
9
5
30
0
0
3
2
0
215
0
27
73
0
0
10
20,590
20,590
20,590
20,590
NA
NA
NA
47,062
47,062
47,062
29,107
29,107
29,107
0
60
0
0
0
0
22
0
0
1
1
4
4
1
0
4
0
2
2
0
0
41 |
100
32
117
95
212
31
18
5
40
0
1
4
0
0
212
0
29
71
0
0
20
NA
NA
NA
23,760
NA
NA
NA
46,107
46,107
46,107
30,797
30,797
30,797
0
0
0
0
0
0
7
0
0
0
2
5
0
1
2
0
0
0
2
0
0
19 |
100
66
196
0
196
24
8
3
36
0
1
3
26
0
196
1
64
35
0
0
25
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
126
0
0
0
0
0
30
0
0
1
8
24
5
0
0
0
0
8
3
0
0
79 |
59
33
161
0
161
57
3
2
25
0
1
3
9
0
161
0
73
27
0
0
20
12,338
12,338
13,819
13,819
NA
NA
NA
35,743
35,743
35,743
20,893
20,893
20,893
21
NA
NA
NA
NA
NA
9
0
0
1
8
1
1
0
0
0
0
3
2
2
0
27 |
Sources: STI: PopStats and STI: Colossus
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