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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Baptist Missionary Association Theological Seminary |
Texas College |
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Jarvis Christian University |
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LeTourneau University |
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Trinity Valley Community College |
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Kilgore College |
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The University of Texas at Tyler |
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Tyler Junior 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
5,172
6,805
11,977
45
15
2
29
0
0
5
3
1
11,977
23
57
19
0
0
18
2,962
2,962
2,962
3,112
19,336
21,226
21,976
21,224
23,114
23,864
11,242
13,132
13,882
1,687
30
0
0
0
0
406
0
8
4
11
61
27
37
97
2
38
0
73
13
0
777 |
92
26
5,874
3,804
9,678
50
12
4
25
0
0
4
2
3
7,287
5
75
21
0
2,391
17
9,146
9,596
9,855
9,920
26,582
26,582
41,860
28,190
28,190
43,468
17,816
17,816
33,094
0
1,827
891
21
47
0
730
64
0
16
141
251
86
63
45
741
77
0
483
51
0
2,748 |
NA
NA
2,057
4,010
6,067
43
17
1
29
0
0
4
5
1
6,067
42
42
17
0
0
21
2,160
2,160
2,160
2,160
19,024
20,920
22,120
19,374
21,270
22,470
11,880
13,776
14,976
671
NA
NA
NA
NA
NA
204
1
8
7
48
44
11
11
29
0
9
0
57
1
0
430 |
NA
NA
1,521
3,779
5,300
52
12
1
29
0
1
2
2
1
5,300
43
37
19
0
0
16
2,640
2,640
2,640
2,640
17,400
19,680
20,730
17,272
19,552
20,602
9,866
12,146
13,196
921
30
0
0
0
0
177
0
0
7
14
42
17
21
20
1
5
4
89
9
3
409 |
41
24
1,414
1,975
3,389
37
4
1
9
0
1
3
43
3
3,227
49
44
7
0
162
11
32,490
33,490
34,470
35,500
52,258
52,258
52,258
58,219
58,219
58,219
41,688
41,688
41,688
16
381
74
0
0
0
175
0
0
2
4
63
14
15
15
2
40
0
55
12
1
398 |
NA
NA
750
50
800
2
63
0
17
0
2
1
10
4
730
1
83
16
0
70
10
11,720
11,720
11,720
11,720
25,280
25,280
25,280
24,015
24,015
24,015
15,720
15,720
15,720
0
132
0
0
0
0
67
0
0
3
28
12
20
4
37
4
30
0
8
0
0
213 |
NA
NA
604
40
644
3
82
0
10
0
0
0
2
2
644
0
82
18
0
0
23
10,000
10,008
10,008
10,008
21,808
21,808
21,808
22,908
22,908
22,908
13,808
13,808
13,808
9
94
0
0
0
0
29
0
0
2
2
15
3
3
4
1
26
0
11
0
0
96 |
23
100
6
89
95
49
20
5
23
0
0
1
0
1
52
0
4
92
4
43
3
6,900
7,650
8,850
10,050
22,250
22,250
22,250
21,650
21,650
21,650
12,850
12,850
12,850
0
3
16
0
0
0
7
0
0
2
0
2
2
0
0
0
1
0
0
0
0
14 |
Sources: STI: PopStats and STI: Colossus
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