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.
|
Future Generations University |
Southern Virginia University |
|
Eastern Mennonite University |
|
Bridgewater College |
|
Virginia Military Institute |
|
Mary Baldwin University |
|
Washington and Lee University |
|
Blue Ridge Community College |
|
Piedmont Virginia Community College |
|
James Madison University |
|
University of Virginia-Main Campus |
|
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
|
17
42
23,325
2,599
25,924
51
7
16
7
0
0
5
4
9
17,612
3
94
3
0
8,312
15
18,960
19,244
20,342
20,986
39,926
39,926
76,954
39,926
39,926
76,954
25,466
25,466
62,494
0
4,426
2,463
421
445
0
2,577
491
0
131
170
1,529
1,122
1,676
478
170
708
18
820
654
131
10,675 |
76
18
20,409
2,349
22,758
74
5
5
8
0
0
5
2
1
21,006
2
95
3
0
1,752
17
12,330
12,638
13,092
13,576
31,974
31,974
49,188
31,974
31,974
49,188
19,390
19,390
36,604
0
4,467
739
40
0
0
1,168
0
0
59
75
400
151
279
288
50
385
3
422
139
52
3,471 |
NA
NA
1,076
4,098
5,174
60
12
5
11
0
0
5
5
1
5,174
37
39
23
0
0
20
4,790
4,790
4,790
4,928
NA
NA
NA
21,244
21,244
27,247
12,028
12,028
18,031
478
NA
NA
NA
NA
NA
128
0
0
1
35
61
3
9
8
0
6
0
25
4
0
280 |
NA
NA
1,065
2,653
3,718
65
6
3
15
0
0
4
5
2
3,718
25
53
22
0
0
21
5,364
5,364
5,364
5,502
NA
NA
NA
28,947
28,947
34,950
19,581
19,581
25,584
395
NA
NA
NA
NA
NA
99
0
0
1
17
56
11
12
4
4
5
0
24
4
0
237 |
17
42
2,266
11
2,277
68
5
5
8
0
0
4
3
6
1,898
1
99
1
0
379
8
57,285
59,380
61,750
64,525
87,000
87,000
87,000
NA
NA
NA
NA
NA
NA
0
453
0
0
107
0
283
0
0
21
2
65
69
58
138
13
188
9
113
44
0
1,003 |
NA
NA
1,392
400
1,792
56
21
3
7
0
1
5
6
1
1,217
3
75
22
0
575
14
31,110
31,115
32,036
33,157
46,817
46,817
46,817
48,167
48,167
48,167
38,617
38,617
38,617
0
302
228
0
63
0
150
0
0
2
19
42
16
12
48
2
41
0
19
7
0
358 |
82
49
1,560
0
1,560
72
7
5
9
1
0
4
0
2
1,560
0
99
1
0
0
10
19,210
19,670
19,914
20,484
34,824
34,824
65,526
NA
NA
NA
NA
NA
NA
0
347
0
0
0
0
155
0
1
10
5
67
32
38
49
18
61
8
81
42
35
602 |
91
12
1,422
14
1,436
66
12
1
8
0
0
5
4
3
1,391
1
99
0
0
45
12
37,720
38,460
39,800
41,350
60,045
60,045
60,045
58,869
58,869
58,869
46,894
46,894
46,894
0
328
26
0
0
0
108
0
0
5
10
37
19
15
59
6
21
0
26
9
0
315 |
100
16
878
414
1,292
64
10
2
9
0
0
3
5
6
863
7
88
5
0
429
10
39,220
39,990
40,990
41,860
58,500
58,500
58,500
56,500
56,500
56,500
46,500
46,500
46,500
2
230
90
0
0
0
116
0
0
3
20
33
22
10
31
4
17
1
39
6
0
302 |
100
27
931
36
967
76
5
1
7
3
1
5
0
2
967
1
93
6
0
0
17
17,696
17,960
19,358
20,040
34,416
34,416
34,416
32,040
32,040
32,040
25,040
25,040
25,040
0
204
0
0
0
0
53
0
0
3
16
25
11
9
63
4
0
0
7
0
0
191 |
NA
NA
2
42
44
43
2
0
0
2
0
2
50
0
0
NA
NA
NA
NA
44
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
0
0
9
0
0
0
3
9
0
0
4
2
1
0
2
0
2
0
3
0
0
26 |
Sources: STI: PopStats and STI: Colossus
|