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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Delaware College of Art and Design |
Strayer University-Delaware |
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Washington College |
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Goldey-Beacom College |
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Salem Community College |
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Chesapeake College |
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Rowan College of South Jersey-Cumberland Campus |
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Delaware State University |
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Delaware Technical Community College-Terry |
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Wilmington University |
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University of Delaware |
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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
|
65
19
21,680
2,541
24,221
61
6
5
9
0
0
5
2
12
19,772
3
95
2
0
4,449
15
14,650
15,020
15,410
16,080
33,718
33,718
57,358
32,918
32,918
56,558
18,080
18,080
41,720
260
4,285
1,130
280
57
0
1,261
0
0
64
59
666
611
774
589
104
324
0
325
193
77
5,047 |
NA
NA
4,952
9,726
14,678
45
21
3
12
0
0
4
3
12
9,355
8
30
61
0
5,323
12
11,480
11,760
12,030
12,330
NA
NA
NA
21,930
21,930
21,930
15,930
15,930
15,930
43
1,456
1,807
145
0
0
521
0
0
9
114
131
30
41
15
7
25
7
39
11
0
950 |
NA
NA
3,979
9,252
13,231
43
27
3
18
0
0
5
3
1
13,231
15
52
32
0
0
13
4,945
4,945
4,945
4,965
NA
NA
NA
27,875
27,875
34,738
11,015
11,015
17,878
1,464
127
0
0
0
0
605
0
0
13
82
65
56
49
64
1
78
0
91
19
0
1,123 |
62
30
4,821
1,007
5,828
9
72
1
8
0
0
6
1
2
4,941
5
89
5
0
887
18
8,358
8,358
8,358
10,314
30,236
30,236
40,172
31,091
31,091
41,027
16,602
16,602
26,538
2
670
198
25
0
0
288
27
14
11
46
63
88
23
115
9
66
0
104
16
6
876 |
NA
NA
1,019
1,538
2,557
37
13
3
37
0
0
4
6
0
2,557
16
58
26
0
0
18
4,560
4,710
4,800
4,980
NA
NA
NA
23,351
24,191
24,191
11,669
12,509
12,509
469
NA
NA
NA
NA
NA
73
0
0
3
27
16
17
14
22
1
0
0
31
0
0
204 |
NA
NA
474
1,506
1,980
69
11
2
8
0
0
4
5
1
1,980
33
48
19
0
0
14
3,890
3,890
4,010
4,010
NA
NA
NA
12,960
15,294
17,454
9,360
11,694
13,854
244
NA
NA
NA
NA
NA
68
0
15
3
56
33
14
17
12
2
23
0
39
4
0
286 |
NA
NA
517
577
1,094
45
25
2
13
0
0
3
11
0
1,094
15
51
33
1
0
17
5,550
5,700
5,970
6,150
NA
NA
NA
23,250
24,240
27,000
13,250
14,240
17,000
199
NA
NA
NA
NA
NA
46
0
0
1
10
24
7
4
10
0
4
0
11
1
0
118 |
77
15
639
435
1,074
33
17
2
11
0
0
4
7
26
702
9
80
11
0
372
18
25,500
12,750
13,050
13,440
31,861
31,861
31,861
22,193
22,193
22,193
17,992
17,992
17,992
24
143
167
5
0
0
39
0
0
0
10
19
8
4
19
0
6
1
10
2
0
118 |
66
14
893
23
916
67
9
3
9
0
0
0
9
3
916
1
96
2
0
0
9
48,214
49,768
52,481
54,356
73,896
73,896
73,896
72,970
72,970
72,970
59,060
59,060
59,060
0
217
0
0
0
0
114
0
0
3
27
39
26
27
54
8
86
0
33
15
5
437 |
NA
NA
25
244
269
28
58
1
7
0
0
4
1
0
240
0
6
92
2
29
39
13,515
13,515
13,515
13,920
NA
NA
NA
25,158
25,158
25,158
15,720
15,720
15,720
9
25
12
0
0
0
3
0
0
0
3
3
1
0
0
0
0
2
0
0
0
12 |
61
35
100
4
104
40
30
1
16
0
1
11
1
0
104
0
98
2
0
0
10
25,770
25,770
29,500
30,280
52,930
52,930
52,930
52,930
52,930
52,930
38,730
38,730
38,730
46
NA
NA
NA
NA
NA
11
0
0
1
0
3
3
0
0
0
1
0
11
0
0
30 |
Sources: STI: PopStats and STI: Colossus
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