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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University of Phoenix-Hawaii |
Institute of Clinical Acupuncture & Oriental Med |
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Pacific Rim Christian University |
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Hawaii Medical College |
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Chaminade University of Honolulu |
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Windward Community College |
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Brigham Young University-Hawaii |
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University of Hawaii-West Oahu |
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Honolulu Community College |
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Hawaii Pacific University |
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Kapiolani Community College |
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Leeward Community College |
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University of Hawaii at Manoa |
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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
|
70
23
14,194
5,062
19,256
22
1
30
13
3
0
24
1
6
14,576
4
84
11
0
4,680
14
12,186
12,186
12,186
12,186
32,331
32,331
54,363
35,868
35,868
57,900
18,511
18,511
40,543
0
3,049
985
166
195
0
1,267
160
46
74
493
137
453
237
349
44
320
15
120
75
12
3,802 |
NA
NA
1,641
4,418
6,059
8
2
39
15
4
0
30
1
1
6,059
17
54
29
0
0
21
3,209
3,209
3,214
3,214
NA
NA
NA
25,114
25,114
30,250
7,756
7,756
12,892
841
NA
NA
NA
NA
NA
150
0
0
6
37
10
15
6
51
0
26
0
21
3
4
329 |
NA
NA
1,552
4,270
5,822
10
1
37
12
5
0
26
1
7
5,822
6
59
35
0
0
15
3,284
3,284
3,284
3,284
NA
NA
NA
23,637
23,637
28,773
7,376
7,376
12,512
613
NA
NA
NA
NA
NA
198
0
0
7
27
11
20
10
38
0
27
0
18
3
1
360 |
84
4
2,907
1,841
4,748
22
5
13
19
6
0
25
2
8
3,814
28
56
16
0
934
15
29,300
30,020
31,940
33,020
52,512
52,512
52,512
49,040
49,040
49,040
36,470
36,470
36,470
39
493
205
0
6
0
228
19
0
10
50
96
20
20
49
4
10
0
25
4
6
541 |
NA
NA
892
2,312
3,204
9
2
38
14
6
0
29
2
1
3,204
12
54
34
0
0
18
3,174
3,174
3,174
3,174
NA
NA
NA
25,073
25,073
30,209
7,716
7,716
12,852
457
NA
NA
NA
NA
NA
91
0
0
4
38
10
8
12
27
0
27
1
19
1
1
239 |
96
33
1,436
1,427
2,863
8
2
38
15
4
0
33
0
1
2,863
12
49
39
0
0
16
7,584
7,584
7,584
7,584
NA
NA
NA
31,268
31,268
44,228
13,910
13,910
26,870
0
630
0
0
0
0
117
0
0
5
26
11
25
12
56
1
15
0
6
5
5
284 |
38
70
2,695
141
2,836
20
0
8
7
6
0
9
0
48
2,836
0
67
33
0
0
16
5,890
6,068
6,250
6,438
25,824
25,824
25,824
22,348
22,348
22,348
10,054
10,054
10,054
45
563
0
0
0
0
162
0
0
9
7
46
21
32
33
5
54
9
51
25
3
457 |
NA
NA
515
2,228
2,743
13
1
19
16
8
0
39
3
1
2,743
25
42
31
2
0
21
3,194
3,194
3,194
3,194
NA
NA
NA
25,093
25,093
30,229
7,736
7,736
12,872
301
NA
NA
NA
NA
NA
61
0
0
5
12
9
9
5
22
0
20
1
10
2
1
157 |
93
20
2,028
574
2,602
12
3
25
13
10
0
16
21
0
1,764
5
67
27
1
838
11
26,914
27,454
28,544
29,970
50,932
50,932
50,932
49,002
49,002
49,002
34,262
34,262
34,262
56
291
243
0
17
0
142
3
0
3
10
41
9
16
27
4
24
0
52
0
0
331 |
NA
NA
191
26
217
5
3
23
12
41
0
10
3
5
217
0
33
67
0
0
15
26,037
26,037
26,037
25,927
NA
NA
NA
45,621
45,621
45,621
28,474
28,474
28,474
44
NA
NA
NA
NA
NA
15
0
0
0
10
10
9
0
0
0
0
3
0
0
0
47 |
NA
NA
94
75
169
15
9
23
16
11
1
16
0
9
114
0
40
57
3
55
7
11,900
12,380
12,380
12,380
28,130
28,130
28,130
25,767
25,767
25,767
18,230
18,230
18,230
4
14
5
0
0
0
10
0
0
0
1
3
3
0
0
0
0
0
3
0
0
20 |
NA
NA
49
8
57
46
0
30
16
7
0
0
0
2
0
NA
NA
NA
NA
57
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
0
0
11
0
0
0
8
0
0
0
0
4
0
0
0
0
0
0
0
0
0
12 |
NA
NA
10
0
10
0
10
0
0
20
0
20
50
0
10
0
10
90
0
0
5
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
0
12
7
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0 |
Sources: STI: PopStats and STI: Colossus
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