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.
|
Ohio Institute of Allied Health |
International College of Broadcasting |
|
Ohio Medical Career College |
|
The Modern College of Design |
|
Fortis College-Centerville |
|
United Theological Seminary |
|
Kettering College |
|
Edison State Community College |
|
Clark State College |
|
University of Dayton |
|
Sinclair Community College |
|
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
3,556
13,875
17,431
64
15
3
5
0
1
5
5
2
17,431
25
42
33
0
0
15
3,195
3,195
3,435
3,435
NA
NA
NA
15,082
16,216
19,963
8,359
9,493
13,240
1,947
7
0
0
0
0
561
0
0
10
213
63
57
107
103
0
38
3
122
33
0
1,310 |
62
14
10,212
1,092
11,304
70
6
2
6
0
0
3
2
12
8,176
1
98
1
0
3,128
15
44,890
44,890
46,170
47,600
67,265
67,265
67,265
67,265
67,265
67,265
51,625
51,625
51,625
0
1,971
1,176
112
144
0
791
0
0
28
106
289
284
820
191
11
204
4
214
53
7
3,002 |
NA
NA
765
3,959
4,724
72
14
1
4
0
0
6
2
1
4,724
28
34
38
0
0
13
4,032
4,032
4,152
4,200
NA
NA
NA
23,544
23,544
27,153
8,872
8,872
12,481
475
3
0
0
0
0
164
0
0
1
38
47
8
10
16
0
14
5
32
0
0
335 |
NA
NA
1,121
3,427
4,548
87
3
1
2
0
0
3
3
0
4,548
57
29
13
0
0
24
5,050
4,259
4,251
4,379
NA
NA
NA
19,509
19,509
23,236
9,447
9,447
13,174
403
NA
NA
NA
NA
NA
97
0
0
2
1
36
9
6
5
0
19
0
26
0
0
201 |
83
30
536
276
812
63
9
4
4
0
0
2
11
7
639
11
62
27
0
173
9
13,824
14,232
14,664
15,672
32,760
32,760
32,760
41,551
41,551
41,551
24,163
24,163
24,163
17
146
56
0
23
0
76
0
0
1
0
25
0
10
8
0
4
0
6
0
0
130 |
NA
NA
432
39
471
17
29
4
5
0
0
1
27
16
0
NA
NA
NA
NA
471
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
0
0
58
0
57
0
18
0
0
4
7
9
5
2
1
0
0
0
13
0
0
59 |
NA
NA
454
6
460
52
39
0
2
0
1
5
1
0
460
0
33
67
0
0
5
14,543
14,710
16,459
14,023
NA
NA
NA
42,643
42,643
42,643
21,547
21,547
21,547
75
NA
NA
NA
NA
NA
83
0
0
2
0
13
3
1
11
0
0
0
4
0
0
117 |
92
20
119
70
189
76
6
1
7
0
0
6
4
0
189
0
89
11
0
0
8
33,164
31,007
31,007
30,548
NA
NA
NA
51,392
51,392
51,392
41,798
41,798
41,798
31
22
0
0
0
0
17
0
0
0
12
3
1
0
1
0
0
0
0
0
0
34 |
NA
NA
121
0
121
10
90
0
0
0
0
0
0
0
121
0
7
93
0
0
20
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
38
NA
NA
NA
NA
NA
7
0
0
0
0
2
2
0
0
0
0
0
0
0
0
11 |
NA
NA
44
0
44
61
34
0
2
0
0
2
0
0
44
0
48
50
2
0
8
12,569
11,930
12,430
12,430
NA
NA
NA
24,816
24,816
24,816
22,100
22,100
22,100
25
NA
NA
NA
NA
NA
6
0
0
0
0
3
1
0
0
0
0
1
3
1
0
15 |
NA
NA
39
0
39
38
49
0
0
0
0
10
3
0
39
0
21
74
5
0
8
23,159
15,454
17,303
24,493
NA
NA
NA
49,166
49,166
49,166
38,886
38,886
38,886
17
NA
NA
NA
NA
NA
5
0
0
0
0
2
1
0
0
0
0
1
2
0
0
11 |
Sources: STI: PopStats and STI: Colossus
|