A Market-Based Approach to University Facilities
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.
