“The Overbuilt Campus”, from Axios. 9.21.19

Universities and colleges in the U.S. have been renovating and building up their aging campuses in hopes of wooing a dwindling number of students to enroll, Axios' Marisa Fernandez writes.

The big picture: Higher education institutions are banking on returns on these investments, but student enrollment has been trending downward for 8 consecutive semesters, shuttering 11 universities this year. 

  • "25 more are anticipating either closing or consolidating in the next four years," Education Dive reports.

What's happening: Investment in existing higher education facilities was at an 11-year high in 2018, according to a report last year by Sightlines that pulled data from more than 360 campuses.

  • Driven by ultra-low interest rates in recent years, colleges and universities borrowed a record $41.3 billion through municipal bonds (their principal source of debt funding).

  • That’s up from $28.7 billion a decade ago. 

But the traditional revenue model of enrolling more students isn't supporting the new investments because of broader trends in the U.S., including a booming economy, a low birth rate and fewer international students.