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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Magdalen College |
White Mountains Community College |
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River Valley Community College |
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University of New Hampshire-Franklin Pierce School of Law |
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Vermont Law and Graduate School |
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Lakes Region Community College |
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Colby-Sawyer College |
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NHTI-Concord's Community College |
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New England College |
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Plymouth State University |
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Dartmouth College |
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Southern New Hampshire University |
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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
|
96
35
56,661
127,438
184,099
51
18
2
14
0
1
4
10
1
159,653
1
24
74
0
24,446
24
9,650
15,380
15,380
16,450
40,450
40,450
40,450
43,192
43,192
43,192
29,866
29,866
29,866
3,656
20,986
9,475
31
0
0
3,263
0
0
8
233
856
788
150
47
6
102
0
2,490
0
3
7,946 |
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 |
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 |
96
9
2,699
157
2,856
28
5
1
4
0
0
1
7
54
986
1
80
19
0
1,870
8
39,648
40,642
41,518
41,578
61,592
61,592
61,592
61,834
61,834
61,834
45,328
45,328
45,328
22
285
933
4
0
0
240
0
0
1
18
33
16
6
37
6
12
0
69
0
0
438 |
NA
NA
939
1,674
2,613
71
4
3
9
0
1
3
10
0
2,613
9
56
35
0
0
11
7,200
7,200
7,200
7,200
23,984
23,984
32,234
33,968
33,968
42,218
16,786
16,786
25,036
368
NA
NA
NA
NA
NA
139
0
0
1
46
3
7
6
0
0
21
0
14
0
0
237 |
90
12
771
179
950
76
4
1
3
0
0
1
14
1
834
0
85
15
0
116
10
44,930
46,254
47,164
18,400
38,708
38,708
38,708
40,740
40,740
40,740
23,900
23,900
23,900
21
221
19
0
0
0
76
0
0
5
12
40
10
11
44
8
36
1
22
3
0
268 |
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
533
157
690
62
4
2
11
0
1
2
15
3
0
NA
NA
NA
NA
690
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
0
0
124
0
113
0
67
6
5
7
24
20
7
8
4
0
0
0
20
4
0
172 |
NA
NA
448
237
685
67
3
5
8
0
0
3
8
7
0
NA
NA
NA
NA
685
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
0
0
28
0
170
0
46
0
0
2
4
9
2
0
3
0
0
0
11
1
0
78 |
NA
NA
101
573
674
80
3
2
6
0
0
4
6
0
674
3
36
61
0
0
6
6,940
6,940
6,940
6,940
NA
NA
NA
31,792
31,792
40,042
17,804
17,804
26,054
110
NA
NA
NA
NA
NA
53
0
0
0
22
3
3
1
0
0
1
0
3
0
0
86 |
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 |
44
100
58
0
58
100
0
0
0
0
0
0
0
0
58
0
98
2
0
0
12
24,000
23,600
24,000
23,600
37,956
37,956
37,956
35,800
35,800
35,800
24,900
24,900
24,900
0
15
0
0
0
0
7
0
0
1
3
2
1
0
0
0
2
1
0
0
0
17 |
Sources: STI: PopStats and STI: Colossus
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