The higher ed bubble – the explosive growth in tuition and student loan debt driven by government policies promoting college – has resulted in a lot of hiring and compensation growth in the higher ed industry.
And, in turn, that’s driving big-money development around college campuses to serve this growing class of rich university elite.
Real-estate investors and developers, hungry for new areas for growth, are finding a lucrative and previously untapped market in these areas surrounding college campuses, one marked by low inventory, booming enrollment and an increasing appetite for luxury living.
We see this national trend here in North Dakota, where salary for the state’s 11 university presidents has grown rapidly over the last decade (more than doubling for the heads of NDSU and UND). North Dakota’s new chancellor, Hamid Shirvani, got a $120,000 per year raise over his predecessor (he promptly bought a Porsche upon taking his new job).
At North Dakota’s largest university, the average full professor makes over $100,000/year, an amount that has grown $42,000 over the last decade.
How many of you are making $42,000/year more than you were a decade ago? Not many of you. But then, most of us don’t work in an industry in the middle of a bubble.