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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Nazarene Theological Seminary |
WellSpring School of Allied Health-Kansas City |
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City Vision University |
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Concorde Career College-Kansas City |
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Calvary University |
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Kansas City Art Institute |
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Kansas City University |
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Rockhurst University |
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State Fair Community College |
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Metropolitan Community College-Kansas City |
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University of Missouri-Kansas City |
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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
|
75
30
9,138
6,139
15,277
51
10
9
12
0
0
5
2
11
10,149
31
59
10
0
5,128
14
10,145
10,599
11,287
11,988
29,566
29,566
46,366
31,162
31,162
47,962
18,104
18,104
34,904
0
1,634
1,498
132
484
0
803
19
0
40
139
227
251
227
288
444
96
16
233
47
11
2,841 |
NA
NA
5,580
7,414
12,994
57
15
3
15
0
0
6
3
1
12,994
15
60
25
1
0
13
3,240
3,480
3,630
3,630
NA
NA
NA
22,440
25,920
28,410
13,522
17,002
19,492
1,791
NA
NA
NA
NA
NA
624
4
0
54
10
106
6
58
79
0
23
0
218
23
3
1,208 |
NA
NA
1,886
1,868
3,754
81
3
1
9
0
0
5
0
1
3,754
28
57
15
0
0
17
3,288
3,288
3,624
4,104
17,091
18,651
20,235
20,685
22,245
23,829
9,381
10,941
12,525
599
NA
NA
NA
NA
NA
135
0
0
4
4
48
7
2
14
0
22
0
94
0
0
330 |
69
19
2,059
1,437
3,496
67
8
4
13
0
0
4
3
2
2,430
24
67
9
0
1,066
12
39,780
40,480
41,701
43,420
62,830
62,830
62,830
69,308
69,308
69,308
51,290
51,290
51,290
22
453
238
16
48
0
189
0
0
6
27
31
23
18
43
5
26
0
36
6
0
410 |
NA
NA
2,037
11
2,048
51
4
25
7
0
0
4
2
5
0
NA
NA
NA
NA
2,048
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
0
0
103
0
401
0
84
12
0
8
107
53
24
27
25
10
40
5
27
16
0
438 |
60
36
774
15
789
62
8
4
15
0
0
8
2
1
789
1
94
5
0
0
10
40,100
40,575
41,924
43,550
59,300
59,300
59,300
57,650
57,650
57,650
47,250
47,250
47,250
0
132
0
0
0
0
83
0
0
7
18
8
7
5
24
0
23
0
6
0
0
181 |
71
35
149
113
262
75
6
6
8
0
0
3
2
1
198
14
67
18
1
64
8
11,164
11,576
12,500
13,692
22,470
22,470
22,470
42,476
42,476
42,476
20,084
20,084
20,084
6
43
22
0
0
0
23
0
0
2
2
8
2
1
3
0
2
0
2
2
0
47 |
99
58
240
0
240
15
30
2
15
0
1
2
34
0
240
0
42
58
0
0
26
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
127
37
0
0
0
0
37
0
0
2
10
18
7
0
0
0
0
9
5
0
0
88 |
NA
NA
21
213
234
38
9
1
14
0
1
8
26
3
188
0
6
90
3
46
6
6,000
6,000
6,000
6,400
NA
NA
NA
15,536
15,536
15,536
9,808
9,808
9,808
9
20
15
0
0
0
18
0
0
0
2
4
0
0
0
0
0
0
0
0
0
24 |
NA
NA
179
0
179
52
27
0
9
1
2
9
1
0
179
0
37
63
0
0
14
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
13
NA
NA
NA
NA
NA
14
0
0
0
3
2
3
1
0
0
0
1
0
0
0
24 |
NA
NA
74
98
172
69
13
2
9
1
1
1
1
2
0
NA
NA
NA
NA
172
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
0
0
26
0
0
25
22
0
0
1
6
1
1
2
2
0
3
0
2
0
0
40 |
Sources: STI: PopStats and STI: Colossus
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