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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Western Technical College |
Pima Medical Institute-El Paso |
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Burrell College of Osteopathic Medicine |
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Texas Tech University Health Sciences Center-El Paso |
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New Mexico State University-Alamogordo |
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Western Technical College |
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Southwest University at El Paso |
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New Mexico State University-Dona Ana |
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New Mexico State University-Main Campus |
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The University of Texas at El Paso |
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El Paso Community College |
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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
7,232
17,188
24,420
5
2
1
83
0
0
0
8
1
24,420
35
49
17
0
0
22
3,274
3,274
3,274
3,274
NA
NA
NA
21,198
21,198
23,238
11,019
11,019
13,059
3,321
NA
NA
NA
NA
NA
621
0
0
28
5
108
136
75
2
0
66
0
446
6
0
1,493 |
100
35
16,154
8,197
24,351
5
2
1
84
0
0
1
1
5
20,609
2
80
18
0
3,742
20
9,450
9,744
9,744
9,744
25,916
25,916
41,684
28,362
28,362
44,130
15,910
15,910
31,678
0
3,849
1,253
152
84
0
892
78
2
44
22
451
337
218
222
31
96
0
199
76
20
2,688 |
76
21
11,296
3,483
14,779
27
3
1
58
0
3
3
1
6
12,113
3
78
19
0
2,666
15
7,301
7,301
7,627
8,147
26,111
26,111
43,235
26,847
26,847
43,971
14,085
14,085
31,209
0
2,407
751
83
21
0
760
25
142
5
50
96
414
414
212
48
150
3
433
159
41
2,952 |
NA
NA
2,898
3,951
6,849
19
2
1
70
0
2
2
2
2
6,849
13
59
27
0
0
20
1,776
1,776
1,842
2,322
NA
NA
NA
21,022
21,418
25,060
8,260
8,656
12,298
916
NA
NA
NA
NA
NA
217
0
0
2
16
19
26
32
21
1
34
2
62
9
1
442 |
NA
NA
1,817
0
1,817
6
6
1
86
0
0
0
0
0
1,817
0
40
59
0
0
19
16,000
16,000
16,000
16,000
NA
NA
NA
27,550
27,550
27,550
23,210
23,210
23,210
625
52
0
0
0
0
95
0
0
3
0
29
11
8
11
0
24
12
51
0
0
244 |
NA
NA
594
554
1,148
15
4
1
72
1
1
7
0
0
1,148
0
49
51
0
0
30
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
274
29
0
0
0
0
99
0
0
1
1
24
17
4
0
0
0
24
13
2
0
185 |
NA
NA
289
799
1,088
36
2
2
50
0
3
4
1
1
1,088
15
46
38
1
0
13
2,054
2,064
2,136
2,616
NA
NA
NA
20,571
20,955
24,027
8,554
8,938
12,010
66
NA
NA
NA
NA
NA
41
0
0
0
4
5
8
3
8
0
11
0
12
4
0
96 |
NA
NA
874
48
922
21
6
20
47
0
0
3
3
0
235
0
34
66
0
687
9
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
0
173
24
0
87
0
285
7
0
0
5
151
29
72
37
404
205
1
504
25
16
1,741 |
NA
NA
687
0
687
43
5
26
18
0
0
5
3
0
0
NA
NA
NA
NA
687
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
0
0
0
0
134
0
27
2
0
4
24
38
9
7
0
0
0
0
31
0
0
142 |
NA
NA
667
0
667
10
5
1
79
0
1
4
0
0
667
0
53
46
0
0
25
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
96
NA
NA
NA
NA
NA
26
0
0
0
9
2
0
0
0
0
0
0
5
0
0
42 |
NA
NA
500
135
635
20
6
1
62
1
0
9
0
0
619
0
25
75
0
16
30
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
93
41
6
0
0
0
54
0
0
1
0
7
3
4
0
0
0
7
4
1
0
81 |
Sources: STI: PopStats and STI: Colossus
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