Higher Education Capital Renewal Backlog Rises Just 2% in 2024, Gordian Reports

/EIN News/ -- Greenville, SC, April 07, 2025 (GLOBE NEWSWIRE) -- Reduced campus investments in facilities were offset by slowing inflationary pressures last year, leading to a modest 2% increase in the backlog of capital renewal needs on campuses, as noted in Gordian's latest State of Facilities in Higher Education report.

Gordian, provider of data-driven solutions for all phases of the building lifecycle, published the 12th edition of the State of Facilities in Higher Education report. The report reveals that significant facilities investments over the past two years, coupled with slowing inflation rates, have reduced the spending shortfall to 32.5%, closing the gap by 1.5 percentage points from Gordian’s analysis last year.

“Our conversations with campus leadership, paired with undeniable data insights, highlight the ongoing challenges of project costs outstripping budgets and underscore the critical need for strategic reinvestment,” said Kris Gorriarán, President of Gordian. “This report serves as both a reflection on current campus conditions and a guide for future decisions, urging institutions to act proactively to avoid financial burdens and ensure sustainable growth.”

The report is based on survey results and comprehensive analysis from Gordian’s expansive database of 43,000 campus buildings, 1.1 billion gross square feet of space and more than $13.5 billion in capital and operating budgets.

Key findings include: 

• Enrollment Trends: A 4.5% spike in student enrollment for 2024-2025 is offset by a forecasted 13% decline in high school graduates from 2025-2041 and a continued drop in international students.
• Federal Influence: The federal government is reimagining its role in education, potentially reshuffling financial tools for colleges and universities.
• Campus Expansion: While 25% of campuses show modest expansion, most institutions are reassessing long-term operational needs, leading to a multi-year curtailment of expansions.
• Funding Shortfall: Investment in existing campus assets has rebounded, reducing the funding shortfall to 32.5%, though it remains significant.
• Capital Renewal Backlog: The backlog of capital renewal needs grew modestly by 2%, now approaching $145 per gross square foot.
• Operational Spending: Operational spending increased by 4.5%, keeping pace with inflation but not fully recovering from pre-pandemic reductions.
• Artificial Intelligence (AI) in Facilities Management: AI is making inroads, with 11% of institutions actively implementing AI tools and another 53% exploring AI applications in facilities operations.

“It is a complicated time to operate a college or university campus,” said Pete Zuraw, Vice President of Market Strategy and Development for Gordian. “Having the best possible information about an institution’s particular situation, as well as the larger education facilities context, will be essential in leading the way forward. The call to action from this year’s findings is to act or be acted upon.”

For more than a decade, the State of Facilities in Higher Education report has chronicled and analyzed trends on North American campuses, offering strategic guidance to navigate the sector's most pressing issues. Gordian collaborates closely with leading higher education societies, including APPA – Leadership in Educational Facilities, National Association of College and University Business Officers (NACUBO) and Society for College and University Planning (SCUP), to provide industry leaders with the insights they need. The report also features real-world case studies and commentary from higher education leaders.

To access the comprehensive report, click here.

About Gordian 
Gordian (www.gordian.com) is the leading provider of Building Intelligence™ Solutions, delivering unrivaled insights, robust technology and comprehensive expertise that fuel customers’ success during every phase of the building lifecycle. Gordian created Job Order Contracting (JOC) and the industry standard RSMeans™ Data. Gordian empowers organizations to optimize capital investments, improve project performance and minimize long-term operating expenses.

Sarah Walker
                    Gordian
                    8644518036
                    s.walker@gordian.com