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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CHI Health School of Radiologic Technology |
Universal College of Healing Arts |
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College of Saint Mary |
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Nebraska Methodist College of Nursing & Allied Health |
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Clarkson College |
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Midland University |
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University of Nebraska Medical Center |
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Iowa Western Community College |
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Creighton University |
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University of Nebraska at Omaha |
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Metropolitan Community College Area |
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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
|
NA
NA
4,853
11,111
15,964
48
9
3
18
0
0
5
16
1
15,964
41
36
23
0
0
19
3,195
3,195
3,285
3,285
NA
NA
NA
17,376
17,376
18,906
7,035
7,035
8,565
1,383
NA
NA
NA
NA
NA
440
0
0
4
86
85
50
67
99
1
90
12
147
22
1
1,104 |
87
25
10,993
4,022
15,015
62
7
5
15
0
0
5
1
5
11,859
2
81
17
0
3,156
15
8,136
8,136
8,136
8,370
24,974
24,974
38,962
25,362
25,362
39,350
13,364
13,364
27,352
0
2,414
869
31
0
0
736
18
7
19
23
218
106
32
193
9
129
10
155
15
16
1,686 |
72
20
7,192
1,063
8,255
69
3
9
9
0
0
5
1
2
4,262
2
95
4
0
3,993
10
43,018
44,524
45,590
47,000
63,790
63,790
63,790
62,830
62,830
62,830
51,000
51,000
51,000
1
1,069
334
57
804
0
755
47
0
35
2
231
329
108
107
62
174
5
261
24
8
2,148 |
NA
NA
2,370
3,133
5,503
65
9
2
10
0
1
3
8
3
5,503
39
47
14
0
0
19
6,120
6,495
6,540
6,780
21,890
21,890
22,040
21,556
21,556
21,706
13,140
13,140
13,290
707
NA
NA
NA
NA
NA
197
0
2
1
25
53
17
24
63
5
45
5
58
4
3
502 |
NA
NA
2,939
847
3,786
72
3
5
7
0
0
4
1
8
897
0
78
22
0
2,889
2
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
0
435
294
68
331
0
690
248
593
5
46
359
231
705
156
1,102
223
0
560
58
35
5,011 |
67
29
1,223
334
1,557
59
8
2
16
0
0
2
7
6
1,333
11
84
5
0
224
13
35,528
36,746
38,300
40,270
56,148
56,148
56,148
56,148
56,148
56,148
45,386
45,386
45,386
0
228
78
0
0
0
104
0
0
0
45
19
9
8
52
5
2
0
9
0
0
253 |
64
100
238
840
1,078
72
7
3
4
0
0
12
2
0
613
0
54
45
0
465
18
14,496
14,880
14,880
15,168
26,522
26,522
26,522
28,238
28,238
28,238
18,874
18,874
18,874
43
127
94
0
24
0
63
0
0
2
18
22
7
4
14
0
0
0
6
1
0
137 |
88
56
799
241
1,040
76
6
3
8
0
1
2
4
0
752
1
68
32
0
288
12
16,903
16,691
17,228
18,173
36,281
36,281
36,281
40,867
40,867
40,867
26,557
26,557
26,557
62
243
91
0
0
54
76
0
0
1
17
26
9
3
2
6
0
1
11
0
0
152 |
44
47
618
115
733
64
8
3
18
0
0
3
3
2
482
3
75
22
1
251
7
21,370
21,800
22,450
23,340
37,278
37,278
37,278
42,914
42,914
42,914
29,400
29,400
29,400
0
133
115
4
52
0
101
0
0
3
27
24
5
6
18
0
11
1
10
5
0
211 |
NA
NA
24
3
27
85
7
4
4
0
0
0
0
0
27
0
22
74
4
0
10
11,327
11,822
11,822
11,822
NA
NA
NA
24,110
24,110
24,110
17,102
17,102
17,102
6
NA
NA
NA
NA
NA
5
0
0
0
0
1
1
0
0
0
0
0
0
0
0
7 |
NA
NA
25
0
25
68
0
4
24
0
0
4
0
0
25
0
72
28
0
0
8
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
0
12
0
0
0
0
2
0
0
0
0
1
0
0
0
0
0
0
0
0
0
3 |
Sources: STI: PopStats and STI: Colossus
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