Policy Brief: From Empty Classrooms to Efficient Campuses

Executive Summary

Colleges and universities across the country are burdened with inefficiently utilized facilities, leading to unnecessary costs, wasted space, and misplaced financial priorities. This policy brief, authored by economist Richard Vedder, examines the systemic mismanagement of campus facilities and proposes market-based reforms to optimize space usage, reduce waste, and refocus universities on their core academic mission.

Key Findings

• Severe Underutilization: Campus buildings are frequently vacant during weekends, summers, and even during peak academic hours.

• Perverse Incentives: Universities continue constructing new facilities despite declining enrollments, fueling financial strain.

• Regulatory Burdens: Public universities face excessive labor and construction regulations that drive up costs.

• Misplaced Priorities: Institutions prioritize extravagant student amenities over necessary building maintenance.

• Lack of Market Discipline: Unlike private-sector organizations, universities do not leverage competitive market forces to manage space efficiently.

Key Recommendations

✔ Create an internal market for space utilization – Charge departments for facility use, encouraging more efficient scheduling and space-sharing.
✔ Encourage leasing over ownership – Universities should consider renting rather than owning non-core facilities to reduce costs and increase flexibility.
✔ Reduce construction costs through deregulation – Reform labor laws and construction mandates that drive up the price of university buildings.
✔ Transition non-academic facilities to private management – Privatize dormitories, cafeterias, and athletic centers to improve efficiency and cut operating expenses.
✔ Budget for maintenance upfront – Include repair and renovation costs in new construction budgets to prevent costly deferred maintenance.
✔ Limit unnecessary campus expansion – Reduce incentives for building new facilities that do not serve core academic functions.

By implementing these reforms, universities can lower costs, improve space utilization, and refocus resources on their primary mission: educating students and advancing knowledge.

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From Empty Classrooms to Efficient Campuses