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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WellSpring School of Allied Health-Lawrence |
Rasmussen University-Kansas |
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Haskell Indian Nations University |
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Ottawa University-Ottawa |
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Flint Hills Technical College |
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Baker University |
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Emporia State University |
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Washburn University |
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University of Kansas |
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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
|
88
31
23,946
4,460
28,406
66
4
6
9
0
0
5
2
7
20,696
2
91
7
0
7,710
17
11,166
11,166
11,167
11,700
27,132
27,132
44,844
27,250
27,250
44,962
16,314
16,314
34,026
0
4,131
1,513
377
615
0
2,789
1,073
114
118
644
554
692
630
405
683
430
1
955
186
7
9,281 |
NA
NA
3,886
1,777
5,663
62
7
1
14
0
1
6
5
4
4,930
15
66
19
0
733
13
8,762
8,762
9,154
9,578
23,787
23,787
34,791
24,628
24,628
35,632
14,025
14,025
25,029
234
701
143
0
108
0
319
0
0
23
32
103
51
45
47
3
58
6
98
14
1
800 |
98
26
2,771
1,887
4,658
67
4
2
11
0
0
5
7
5
2,412
2
87
10
0
2,246
17
6,971
7,001
7,001
7,356
23,306
23,306
31,619
23,306
23,306
31,619
12,764
12,764
21,077
0
710
1,207
3
0
0
200
0
0
7
16
91
15
51
68
9
65
0
79
27
1
629 |
92
28
949
996
1,945
69
10
3
9
0
1
4
3
2
1,457
24
64
11
0
488
12
30,770
31,700
32,320
33,900
51,060
51,060
51,060
50,060
50,060
50,060
39,240
39,240
39,240
3
288
231
34
0
0
155
0
0
6
29
33
6
8
36
0
19
0
46
14
0
352 |
NA
NA
267
1,372
1,639
65
2
2
26
0
1
3
0
1
1,639
72
23
5
0
0
14
6,200
6,520
6,520
6,196
NA
NA
NA
24,220
24,220
24,220
16,570
16,570
16,570
98
NA
NA
NA
NA
NA
51
0
0
0
0
11
4
3
4
0
5
0
14
0
0
92 |
80
10
993
62
1,055
52
15
3
16
0
2
5
0
6
936
0
96
4
0
119
15
32,180
33,380
34,280
35,300
52,300
52,300
52,300
50,140
50,140
50,140
40,140
40,140
40,140
0
133
36
0
0
0
42
0
0
0
14
23
20
9
47
1
18
4
2
4
0
184 |
88
76
805
73
878
0
0
0
0
0
100
0
0
0
878
1
83
16
0
0
20
480
480
480
600
9,010
9,010
9,010
20,537
20,537
20,537
9,500
9,500
9,500
65
50
0
0
0
0
42
4
0
3
0
12
6
4
2
1
57
0
16
18
0
165 |
NA
NA
185
148
333
49
24
3
10
0
1
3
10
0
333
0
21
79
0
0
11
11,777
11,571
10,571
15,340
NA
NA
NA
31,095
31,095
31,095
21,159
21,159
21,159
179
35
0
0
0
0
21
0
0
0
7
3
0
0
0
0
0
0
2
0
0
33 |
NA
NA
36
0
36
69
14
0
3
0
0
14
0
0
36
0
31
69
0
0
10
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
9
NA
NA
NA
NA
NA
3
0
0
0
0
2
0
0
0
0
0
0
0
0
0
5 |
Sources: STI: PopStats and STI: Colossus
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