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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Daytona College |
Flagler College |
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Bethune-Cookman University |
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Stetson University |
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Saint Johns River State College |
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Embry-Riddle Aeronautical University-Daytona Beach |
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Daytona State College |
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Embry-Riddle Aeronautical University-Worldwide |
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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
|
62
54
4,200
8,068
12,268
52
8
4
18
1
0
4
5
6
9,037
2
22
76
0
3,231
22
10,296
10,748
11,185
11,665
NA
NA
NA
28,621
28,621
28,621
18,461
18,461
18,461
515
1,529
1,154
0
0
0
313
0
0
0
157
39
95
11
0
0
1
0
16
0
0
632 |
NA
NA
4,530
7,277
11,807
54
13
3
22
0
0
5
2
1
11,807
15
53
32
0
0
17
3,106
3,106
3,140
3,106
18,285
18,285
27,173
16,230
16,230
25,118
7,930
7,930
16,818
1,911
403
0
0
0
0
400
0
0
12
19
59
38
54
40
0
245
0
69
84
10
1,030 |
66
28
7,867
3,203
11,070
42
3
4
11
0
0
4
25
11
10,274
25
70
5
0
796
18
37,964
39,066
40,564
42,304
62,936
62,936
62,936
62,936
62,936
62,936
49,266
49,266
49,266
24
1,397
218
29
0
0
413
20
0
29
446
181
168
171
48
14
67
0
122
76
0
1,755 |
NA
NA
1,859
5,207
7,066
62
9
4
14
0
0
5
4
1
7,066
40
44
16
0
0
20
2,830
2,830
2,830
2,830
NA
NA
NA
20,023
20,023
27,545
9,565
9,565
17,087
837
122
0
0
0
0
197
0
0
9
19
31
15
22
40
0
33
6
90
3
1
466 |
86
9
3,232
437
3,669
55
10
2
18
0
0
5
3
6
2,338
2
95
3
0
1,331
10
49,500
50,800
52,320
55,220
74,149
74,149
74,149
74,149
74,149
74,149
58,819
58,819
58,819
0
728
200
0
289
0
308
0
0
17
39
69
73
43
101
7
117
3
98
29
4
908 |
100
10
2,404
111
2,515
1
59
0
3
0
0
2
33
2
2,414
1
95
4
0
101
14
14,794
14,794
14,794
14,794
29,940
29,940
29,940
35,290
35,290
35,290
20,794
20,794
20,794
0
337
35
0
0
0
156
0
0
8
21
36
29
15
62
2
28
0
49
0
1
407 |
78
15
2,369
72
2,441
72
3
1
13
0
0
4
3
4
2,432
2
94
5
0
9
16
20,040
21,140
23,760
26,610
46,310
46,310
46,310
44,460
44,460
44,460
31,960
31,960
31,960
0
552
7
0
0
0
144
0
0
6
18
32
54
24
55
8
61
0
36
9
0
447 |
NA
NA
199
0
199
45
39
0
12
1
0
2
2
0
199
1
35
65
0
0
10
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
33
0
0
0
0
0
19
0
0
1
10
2
1
0
0
0
0
0
3
0
0
36 |
Sources: STI: PopStats and STI: Colossus
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