The Education Magazine
May 20, 2025
Over many years, Western Illinois University’s student body has served as a major economic driver for the town of Macomb. Cafes thrived. Apartments filled up by August. Local retail shops timed their inventory around the semester schedule. The rhythm is absent today. The rationale is evident: declining college enrollment disproportionately impacts communities such as Macomb.
Over the past twenty years, Western Illinois University has seen its student body cut nearly in half. The ripple effect is visible even where. “We used to have steady lunch traffic from students and professors,” said Linda Pratt, who runs a sandwich shop two blocks from campus. Now we’re lucky to break even on weekdays.”
Macomb’s story isn’t unique. Across the Midwest and Northeast, small towns built around public universities are dealing with a slow but steady economic unraveling. A recent report from the National Student Clearinghouse shows that enrollment at regional public colleges has dropped more than 15% since 2015.
“We saw it coming, but not like this,” said Dr. Evelyn James, a sociologist at the University of Vermont who studies rural education. “A drop in students means less spending, fewer part-time jobs, and in many cases, a community identity that starts to fade.”
Housing Market Feels the Enrollment Drop
Local housing markets are shifting under the pressure of declining college enrollment. Off-campus apartments that once had waitlists are now offering discounts, flexible leases, and even free utilities just to keep units occupied. “It’s a complete turnaround from where we were five or ten years ago,” said Carl Simmons, a property manager who oversees three complexes near the Macomb campus.
In Carbondale, home to Southern Illinois University, city council members have begun discussing rezoning measures to turn former student housing into affordable units for low-income families. The challenge? These towns were originally built solely for students.
“They designed everything around the university—transportation, retail, and events. With fewer students, we have to rethink what our town is supposed to be,” said Maya Richardson, a city planner in Carbondale.
Many factors contribute to the declining college enrollment trend. In some areas, high school graduation rates are falling. Elsewhere, students are opting for community colleges, online degrees, or skipping college entirely. Affordability is part of it—tuition continues to rise while family incomes stay flat.
Final thoughts
“There’s a growing feeling that a four-year degree isn’t worth the cost,” said David Knowles, a Higher Ed Futures Group analyst. “And that’s not just talk. It’s showing up in the numbers.”
Some universities are trying to adapt. Arizona State has ramped up online programs, and Purdue has focused on job placement to attract new students. But for many small colleges, reacting to declining college enrollment isn’t just a strategy—it’s a matter of survival.
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