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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The Landing School |
White Mountains Community College |
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Lakes Region Community College |
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York County Community College |
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Plymouth State University |
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University of New England |
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Dartmouth College |
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University of New Hampshire-Main Campus |
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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
|
87
14
12,410
1,216
13,626
82
1
3
4
0
0
2
4
3
11,376
2
97
2
0
2,250
16
18,938
18,962
19,024
19,112
36,076
36,076
55,846
36,076
36,076
55,846
23,312
23,312
43,082
21
2,585
739
71
15
0
801
117
0
37
224
480
192
380
223
34
207
2
364
81
23
3,165 |
6
67
6,678
68
6,746
44
5
12
8
0
1
6
2
21
4,447
2
98
1
0
2,299
7
60,117
60,870
62,658
65,739
87,793
87,793
87,793
NA
NA
NA
NA
NA
NA
0
1,211
704
100
74
0
810
38
0
129
281
518
222
724
354
27
458
1
373
109
17
4,061 |
89
13
4,389
2,084
6,473
74
5
8
2
0
0
1
8
1
3,863
1
75
24
0
2,610
12
38,750
39,820
40,950
42,550
63,690
63,690
63,690
60,250
60,250
60,250
48,750
48,750
48,750
0
549
461
52
329
0
384
42
0
16
157
70
54
43
59
27
105
0
131
28
0
1,116 |
91
15
3,446
393
3,839
79
2
1
5
0
0
6
5
2
3,336
1
97
2
0
503
15
14,492
14,492
14,492
14,558
30,854
30,854
41,794
30,854
30,854
41,794
20,608
20,608
31,548
0
722
191
15
26
0
216
0
0
8
14
39
21
9
49
4
38
0
57
12
6
473 |
NA
NA
526
1,256
1,782
85
2
2
4
0
0
3
3
1
1,782
36
40
24
0
0
21
3,720
3,866
3,760
3,866
20,283
20,283
23,163
29,006
29,006
31,886
9,093
9,093
11,973
152
NA
NA
NA
NA
NA
58
0
2
1
22
8
5
1
8
0
4
0
1
0
0
110 |
NA
NA
218
477
695
78
1
1
5
0
1
2
12
0
695
22
51
27
0
0
9
6,738
6,720
6,720
6,720
22,428
22,428
30,678
29,604
29,604
37,854
13,196
13,196
21,446
100
NA
NA
NA
NA
NA
40
0
0
1
28
3
3
2
0
0
6
0
4
0
0
87 |
NA
NA
163
345
508
78
1
1
6
0
1
3
11
0
508
11
46
43
0
0
7
7,050
7,050
7,050
7,050
NA
NA
NA
26,994
26,994
35,244
15,482
15,482
23,732
97
NA
NA
NA
NA
NA
39
0
0
2
23
2
2
2
0
0
7
0
3
0
0
80 |
NA
NA
43
0
43
84
2
0
5
0
0
0
2
7
43
2
28
70
0
0
7
25,012
26,012
26,012
27,700
NA
NA
NA
46,043
46,043
46,043
33,343
33,343
33,343
10
NA
NA
NA
NA
NA
6
0
0
0
0
2
1
0
0
0
0
0
4
0
0
13 |
Sources: STI: PopStats and STI: Colossus
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