What Happens to Small College Towns When the School Shuts Down

Beginning in 2026, the number of people turning 18 in the U.S. will shrink each year for the foreseeable future—a trend that will be devastating to college enrollment, particularly at small, regional private universities.Since 2016, roughly 150 colleges and universities have already closed, merged, or otherwise consolidated, according to a running tally from Higher Ed Dive. Many schools cited financial struggles and falling enrollment as reasons for closing their doors.As more colleges close or consolidate, their surrounding towns that rely on the constant influx of students, and jobs created by the institution, can be affected. Colleges located near major cities, such as Newbury College, which was located on the outskirts of Boston and enrolled roughly 600 students when it closed in 2019, don’t leave much of a dent in their local housing market. However, schools in smaller and more remote towns can leave a devastating hole in the local housing market and economy when they shutter.To learn more about the potential impacts of future closures, Realtor.com® recently examined three former college towns to find how the loss of the institution affected the local housing market: Cazenovia...