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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Boise Bible College |
Carrington College-Boise |
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Eagle Gate College-Boise Campus |
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Idaho College of Osteopathic Medicine |
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The College of Idaho |
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Treasure Valley Community College |
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Northwest Nazarene University |
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College of Western Idaho |
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Boise State University |
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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
|
84
23
14,870
11,800
26,670
71
2
3
14
0
0
5
3
1
23,491
27
58
15
0
3,179
19
8,068
8,060
8,364
8,782
32,341
32,341
50,535
29,152
29,152
47,346
15,537
15,537
33,731
184
3,874
1,028
53
7
0
1,041
64
2
22
426
120
442
291
252
38
184
3
195
61
7
3,148 |
NA
NA
2,340
7,986
10,326
68
1
2
18
0
1
4
6
1
10,326
40
38
22
0
0
19
3,336
3,336
3,336
3,336
NA
NA
NA
18,318
19,318
22,326
8,566
9,566
12,574
991
NA
NA
NA
NA
NA
282
0
0
8
236
92
42
27
57
0
17
0
73
8
0
842 |
63
11
1,242
532
1,774
71
2
1
12
0
1
6
6
1
1,156
1
86
13
0
618
14
32,780
34,390
36,298
39,370
56,586
56,586
56,586
58,752
58,752
58,752
46,890
46,890
46,890
1
233
212
17
0
0
131
0
0
2
31
25
21
19
37
1
10
0
35
0
0
312 |
NA
NA
538
593
1,131
56
1
1
26
1
1
1
13
1
1,131
8
58
33
1
0
17
5,760
5,895
6,030
6,210
18,309
18,309
18,759
18,309
18,309
18,759
9,774
9,774
10,224
174
NA
NA
NA
NA
NA
60
3
3
2
42
10
6
12
17
0
16
2
11
0
0
184 |
47
14
1,066
10
1,076
55
2
2
17
1
1
5
4
13
1,049
6
93
1
0
27
10
32,855
33,755
34,630
36,030
51,365
51,365
51,365
46,930
46,930
46,930
39,430
39,430
39,430
0
264
8
0
0
0
102
0
0
4
1
34
13
5
49
2
20
0
23
3
0
256 |
NA
NA
626
0
626
74
0
17
4
0
1
1
3
0
0
NA
NA
NA
NA
626
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
0
0
0
0
147
0
39
0
0
2
9
12
6
7
6
0
6
0
16
0
0
103 |
NA
NA
539
0
539
60
5
3
13
1
1
0
17
0
511
0
33
67
0
28
27
13,260
17,112
17,112
18,645
NA
NA
NA
39,585
39,585
39,585
23,700
23,700
23,700
0
14
3
0
0
0
20
0
0
1
5
4
0
0
0
1
0
0
6
0
0
37 |
NA
NA
433
0
433
44
3
6
31
0
1
1
11
1
433
0
47
53
0
0
11
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
161
NA
NA
NA
NA
NA
39
0
0
0
4
12
0
0
0
0
0
0
3
0
0
58 |
96
46
71
32
103
91
3
0
1
1
0
1
0
3
103
1
71
27
1
0
12
13,100
13,100
9,770
11,240
23,788
23,788
23,788
28,811
28,811
28,811
16,976
16,976
16,976
3
12
0
0
0
0
7
0
0
1
1
5
2
0
0
0
4
2
2
0
0
24 |
Sources: STI: PopStats and STI: Colossus
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