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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Villa Maria College |
Hilbert College |
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Trocaire College |
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Bryant & Stratton College-Buffalo |
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D'Youville University |
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Daemen University |
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Niagara County Community College |
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Niagara University |
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Genesee Community College |
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Erie Community College |
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Bryant & Stratton College-Online |
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University at Buffalo |
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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
|
69
16
26,261
5,628
31,889
44
8
14
7
0
0
3
3
20
20,463
3
92
5
0
11,426
11
10,526
10,782
10,782
10,782
33,788
33,788
53,578
31,708
31,708
51,498
17,034
17,034
36,824
0
4,851
3,422
315
765
0
2,066
29
21
56
166
393
596
229
199
318
492
0
266
166
34
5,031 |
NA
NA
6,058
3,360
9,418
44
40
1
7
0
1
5
1
0
9,418
0
22
78
0
0
38
15,076
15,294
15,292
15,891
NA
NA
NA
21,611
21,611
21,611
18,491
18,491
18,491
950
157
0
0
0
0
195
0
0
0
13
7
11
6
159
0
11
2
41
0
0
445 |
NA
NA
4,396
3,222
7,618
49
17
6
7
0
0
4
16
1
7,618
18
55
26
0
0
16
5,722
5,722
5,935
6,100
NA
NA
NA
19,290
24,490
24,490
9,390
14,590
14,590
919
NA
NA
NA
NA
NA
251
0
0
11
0
50
11
46
54
1
58
0
58
0
0
540 |
NA
NA
1,443
2,845
4,288
69
9
1
6
0
1
3
9
2
4,288
50
30
19
0
0
14
5,040
5,240
5,440
5,800
18,930
18,930
19,530
18,930
18,930
19,530
10,715
10,715
11,315
503
NA
NA
NA
NA
NA
103
0
0
5
56
46
20
2
10
1
28
0
33
7
0
311 |
85
16
3,753
468
4,221
54
6
1
4
0
0
2
2
30
2,747
3
86
11
0
1,474
10
35,240
35,980
37,180
38,135
54,085
54,085
54,085
54,255
54,255
54,255
43,255
43,255
43,255
3
738
388
10
0
0
276
0
0
6
22
98
47
26
69
8
23
0
52
16
3
646 |
NA
NA
2,195
2,022
4,217
74
10
3
5
0
1
6
1
0
4,217
33
48
19
0
0
21
5,501
5,980
6,165
6,726
22,380
22,380
27,516
22,380
22,380
27,516
9,260
9,260
14,396
594
NA
NA
NA
NA
NA
144
0
0
5
55
37
6
9
6
2
39
0
58
9
0
370 |
76
16
2,243
382
2,625
74
9
4
6
0
1
2
2
2
1,806
11
81
8
0
819
13
30,360
31,250
32,760
33,724
50,164
50,164
50,164
39,124
39,124
39,124
36,224
36,224
36,224
0
398
349
0
69
0
178
0
0
6
0
71
8
16
29
4
22
0
63
10
4
411 |
82
13
1,692
852
2,544
51
14
8
6
0
0
3
7
10
1,299
0
82
18
0
1,245
11
29,006
30,108
31,170
33,560
49,560
49,560
49,560
49,560
49,560
49,560
37,760
37,760
37,760
91
337
270
13
123
0
182
0
0
4
7
54
20
11
43
0
0
0
61
0
0
382 |
NA
NA
542
1,298
1,840
34
46
3
9
0
1
6
2
0
1,840
5
44
51
0
0
23
17,833
17,578
18,435
19,126
NA
NA
NA
26,306
26,306
26,306
22,406
22,406
22,406
169
59
0
0
0
0
57
0
0
0
4
16
1
2
22
0
2
0
8
0
0
112 |
83
38
391
713
1,104
47
28
3
8
0
1
1
12
0
1,104
11
31
57
0
0
9
18,340
18,700
19,250
19,820
NA
NA
NA
35,020
35,020
35,020
25,120
25,120
25,120
348
18
0
0
0
0
78
0
0
3
25
30
10
2
0
1
0
0
11
0
0
160 |
98
19
907
66
973
37
6
1
3
0
0
2
48
2
939
6
82
12
0
34
15
24,530
25,680
29,900
32,150
48,250
48,250
48,250
42,170
42,170
42,170
34,050
34,050
34,050
0
143
14
0
0
0
59
0
0
3
9
22
10
3
20
3
14
0
7
1
0
151 |
87
31
451
94
545
43
36
5
7
0
1
8
1
0
545
6
79
15
0
0
9
25,400
25,900
27,130
28,670
NA
NA
NA
41,590
41,590
41,590
31,970
31,970
31,970
26
60
0
0
0
0
55
0
0
2
17
7
2
0
6
0
0
5
5
4
0
103 |
Sources: STI: PopStats and STI: Colossus
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