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.
|
Northwestern Health Sciences University |
Mitchell Hamline School of Law |
|
Dunwoody College of Technology |
|
Crown College |
|
Macalester College |
|
Hamline University |
|
Augsburg University |
|
University of Northwestern-St Paul |
|
Bethel University |
|
St Catherine University |
|
Inver Hills Community College |
|
North Hennepin Community College |
|
Concordia University-Saint Paul |
|
Metropolitan State University |
|
Anoka-Ramsey Community College |
|
University of St Thomas |
|
Normandale Community College |
|
Capella University |
|
Walden University |
|
University of Minnesota-Twin Cities |
|
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
|
77
22
38,441
16,449
54,890
56
7
11
6
0
0
5
5
10
39,556
19
76
4
1
15,334
16
15,027
15,254
15,859
16,488
32,866
32,866
52,780
32,866
32,866
52,780
19,838
19,838
39,752
0
7,640
3,100
753
1,051
0
4,229
1,544
324
268
317
1,283
2,229
2,944
1,478
559
1,095
40
1,147
485
78
18,020 |
NA
NA
12,926
31,297
44,223
36
40
4
9
0
0
2
6
2
7,362
0
10
89
0
36,861
30
12,180
12,180
12,483
12,498
NA
NA
NA
35,358
35,358
35,358
17,862
17,862
17,862
0
1,399
8,833
1,500
0
0
1,009
0
0
10
774
45
31
0
15
0
0
0
2
0
0
1,886 |
NA
NA
10,440
33,475
43,915
46
29
3
13
0
0
4
4
1
16,177
0
8
91
0
27,738
36
14,148
14,148
14,328
14,436
NA
NA
NA
22,820
22,820
22,820
15,950
15,950
15,950
0
7,543
6,955
1,070
0
0
583
0
0
8
0
204
106
0
327
0
0
207
83
0
0
1,518 |
NA
NA
3,325
6,295
9,620
45
23
9
13
0
0
5
4
1
9,620
31
53
16
0
0
28
5,679
5,789
6,321
6,321
NA
NA
NA
25,171
25,171
25,171
15,711
15,711
15,711
1,098
NA
NA
NA
NA
NA
192
0
0
8
96
18
26
37
6
1
29
3
31
6
0
453 |
85
22
6,984
2,137
9,121
64
7
6
8
0
0
4
5
5
6,044
1
97
3
0
3,077
13
47,383
48,329
50,366
52,284
68,812
68,812
68,812
71,072
71,072
71,072
55,880
55,880
55,880
44
1,376
880
51
144
0
569
0
0
21
23
171
188
130
161
5
200
0
132
15
0
1,615 |
NA
NA
2,620
5,223
7,843
60
12
6
6
0
0
5
10
1
7,843
45
41
14
0
0
25
5,286
5,515
5,655
5,682
NA
NA
NA
29,036
29,036
29,036
17,959
17,959
17,959
946
NA
NA
NA
NA
NA
161
0
0
3
76
17
14
17
9
2
16
3
40
6
0
364 |
96
30
2,733
3,272
6,005
38
30
16
7
0
1
4
1
3
5,271
2
44
54
0
734
14
8,249
9,395
9,684
9,780
NA
NA
NA
36,208
36,208
36,208
20,344
20,344
20,344
0
1,531
206
0
15
0
281
0
0
11
119
21
33
42
11
2
0
1
60
7
0
588 |
75
18
4,593
1,261
5,854
50
12
7
8
0
0
4
4
15
3,146
10
59
31
0
2,708
15
23,400
23,900
24,400
25,000
41,800
41,800
41,800
41,800
41,800
41,800
31,000
31,000
31,000
30
887
880
17
33
0
193
0
0
5
79
20
6
9
56
0
2
0
22
0
0
392 |
NA
NA
1,500
3,695
5,195
39
25
15
9
0
0
6
3
2
5,195
31
45
23
0
0
24
4,596
4,882
5,050
5,050
NA
NA
NA
27,481
27,481
27,481
13,774
13,774
13,774
509
NA
NA
NA
NA
NA
113
0
0
2
55
11
10
12
4
1
15
1
20
5
0
249 |
NA
NA
1,159
2,530
3,689
52
18
6
14
0
0
5
3
0
3,689
35
42
23
0
0
20
5,558
5,809
6,007
6,007
NA
NA
NA
20,523
20,523
20,523
13,539
13,539
13,539
423
NA
NA
NA
NA
NA
97
0
0
4
31
10
12
12
3
1
11
1
15
4
0
201 |
94
24
2,228
1,305
3,533
58
14
11
10
0
0
4
3
1
2,431
3
66
31
0
1,102
10
42,594
46,494
47,870
49,758
64,744
64,744
64,744
64,744
64,744
64,744
53,108
53,108
53,108
154
568
421
0
93
0
281
0
0
11
21
65
43
30
104
4
46
0
51
5
0
661 |
91
29
2,286
1,235
3,521
71
7
5
7
0
0
3
6
1
2,629
20
71
10
0
892
12
39,030
40,080
41,270
42,930
59,390
59,390
59,390
60,430
60,430
60,430
50,088
50,088
50,088
34
569
283
22
16
0
226
0
0
10
21
55
24
34
106
7
28
2
66
11
1
591 |
92
33
1,858
1,404
3,262
81
4
3
6
0
0
4
1
1
3,173
47
49
3
0
89
15
33,200
34,180
35,340
36,830
52,262
52,262
52,262
49,530
49,530
49,530
44,960
44,960
44,960
33
392
50
0
0
0
137
0
0
5
59
44
37
25
38
4
30
0
49
7
3
438 |
77
21
2,792
369
3,161
39
25
10
13
0
1
6
3
3
2,445
1
91
8
0
716
13
40,005
41,007
42,064
43,942
64,610
64,610
64,610
68,164
68,164
68,164
53,192
53,192
53,192
0
503
230
0
26
0
215
0
0
5
2
58
37
18
84
2
61
5
27
0
0
514 |
90
14
1,676
756
2,432
59
11
8
10
0
0
5
4
2
1,710
1
94
5
0
722
13
44,230
46,221
46,616
48,311
62,261
62,261
62,261
62,261
62,261
62,261
50,231
50,231
50,231
0
413
266
15
0
0
153
0
0
8
43
49
30
21
36
1
19
0
24
5
4
393 |
28
23
2,110
32
2,142
52
6
8
11
0
0
8
1
14
2,142
1
99
0
0
0
10
58,478
60,518
62,500
64,908
82,991
82,991
82,991
NA
NA
NA
NA
NA
NA
0
511
0
0
0
0
213
0
0
21
69
75
46
35
56
5
53
1
65
6
14
659 |
63
31
988
739
1,727
76
6
5
7
0
0
2
2
2
1,379
39
51
11
0
348
22
27,980
28,110
29,230
30,200
46,766
46,766
46,766
51,988
51,988
51,988
37,968
37,968
37,968
29
155
129
0
0
0
57
0
0
2
14
24
3
3
15
0
1
6
8
1
0
134 |
98
66
1,184
240
1,424
69
8
7
5
0
1
6
5
0
1,424
1
68
30
0
0
11
23,122
23,863
24,611
25,659
44,550
44,550
44,550
44,550
44,550
44,550
29,612
29,612
29,612
358
89
0
0
0
0
106
0
0
2
8
26
16
9
11
0
0
0
14
2
3
197 |
NA
NA
456
761
1,217
67
9
4
8
0
3
0
6
1
0
NA
NA
NA
NA
1,217
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
0
0
0
0
308
0
107
0
0
5
13
39
20
7
31
0
6
0
19
1
0
248 |
NA
NA
736
296
1,032
47
5
6
4
0
0
2
28
8
366
0
43
57
0
666
4
11,700
11,700
11,007
12,015
NA
NA
NA
39,863
39,863
39,863
25,739
25,739
25,739
45
18
35
0
153
0
72
0
0
4
18
24
16
13
3
10
1
2
23
3
0
189 |
Page 1 of 2
American Academy of Health and Wellness |
Academy College |
|
Bethlehem College & Seminary |
|
Bethany Global University |
|
United Theological Seminary of the Twin Cities |
|
Luther Seminary |
|
Minneapolis College of Art and Design |
|
North Central University |
|
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
|
91
39
834
150
984
62
13
4
13
0
0
4
2
1
865
6
84
10
0
119
11
26,285
27,200
28,000
29,460
44,475
44,475
44,475
44,645
44,645
44,645
39,405
39,405
39,405
0
207
14
0
0
0
82
0
0
3
23
18
2
7
34
0
15
1
15
5
0
205 |
48
39
734
90
824
62
6
7
11
0
1
7
2
4
714
2
92
6
0
110
10
41,794
41,794
42,560
43,824
60,374
60,374
60,374
60,374
60,374
60,374
49,464
49,464
49,464
0
125
40
0
0
0
71
0
0
6
7
35
7
20
17
0
15
2
16
6
0
202 |
NA
NA
168
180
348
74
7
1
5
0
0
2
1
10
0
NA
NA
NA
NA
348
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
0
0
135
0
0
0
22
2
17
5
14
6
6
4
1
0
4
14
5
0
0
100 |
NA
NA
94
150
244
77
7
2
1
1
0
3
7
0
0
NA
NA
NA
NA
244
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
0
0
27
0
5
0
7
0
0
1
0
3
2
1
0
0
0
3
3
0
0
20 |
94
20
157
44
201
72
3
4
4
0
1
2
9
4
162
1
86
12
0
39
10
15,450
16,100
16,270
20,700
30,672
30,672
30,672
43,216
43,216
43,216
31,032
31,032
31,032
6
54
15
0
0
0
18
0
0
0
0
22
9
1
4
0
8
0
12
4
0
78 |
NA
NA
129
65
194
78
1
5
3
1
1
2
6
4
92
0
82
18
0
102
14
6,560
6,560
7,244
7,144
15,144
15,144
15,144
14,244
14,244
14,244
8,244
8,244
8,244
1
18
34
0
0
0
14
0
0
1
0
4
3
0
1
0
2
0
3
0
0
28 |
NA
NA
118
0
118
0
0
1
1
0
0
0
98
0
118
0
24
76
0
0
8
18,699
18,644
20,103
18,252
NA
NA
NA
38,143
38,143
38,143
29,604
29,604
29,604
5
9
0
0
0
0
9
0
0
0
0
1
0
0
0
0
0
0
7
0
0
17 |
NA
NA
17
12
29
41
0
55
0
0
3
0
0
0
0
NA
NA
NA
NA
29
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
0
0
5
0
1
0
8
0
0
0
0
3
0
0
0
0
4
0
0
0
0
15 |
Page 2 of 2
Sources: STI: PopStats and STI: Colossus
|