As housing costs soar and faculty wages stagnate, colleges and universities are turning to a so-called solution: workforce housing. Marketed as a win-win to help recruit and retain middle-income academic workers—those priced out of both subsidized and market-rate housing—this trend has quietly become a major land grab. But behind the rhetoric of affordability and institutional care lies a troubling truth: big banks and universities are partnering to privatize housing and reshape cities in ways that displace vulnerable communities.
According to Tucker Kaufmann of JPMorganChase—one of the largest financial institutions in the world—universities are "well-positioned" to take on this new real estate role. Kaufmann frames this as a shift in mindset: “It’s about getting people to think about it differently.” But we should be asking: who is doing the thinking—and who is left out of the conversation?
Deverian Baldwin, author of In the Shadow of the Ivory Tower, has spent years exposing how higher education institutions act as unregulated city-builders. Far from being benevolent employers or “anchor institutions,” universities often operate more like corporations—accumulating land, avoiding taxes, and driving gentrification under the guise of community development. Workforce housing is just the latest vehicle for this expansion.
What Is Workforce Housing—And Who Benefits?
Workforce housing is aimed at those earning 60–120% of area median income (AMI)—a group Baldwin might describe as "precarious professionals," squeezed by rising costs but not considered poor enough for traditional subsidies. In theory, this model helps faculty, staff, and grad students live closer to campus. In practice, it creates new market pressures on neighborhoods that are already facing displacement.
In 2022, a third of U.S. renter households were cost-burdened. But instead of addressing root causes—like stagnant wages, predatory lending, or the commodification of housing—universities are stepping in as landlords. With land and capital at their disposal, they can build new developments or purchase existing ones, positioning themselves as the solution to a crisis they help perpetuate.
And let’s be clear: this isn’t just about meeting employee needs. It’s about revenue. Workforce housing offers steady cash flow, and in many cases, universities don’t even pay property taxes on their holdings—leaving cities to foot the bill for infrastructure, schools, and services.
The Real Cost: Gentrification and Displacement
Baldwin’s research underscores a stark reality: universities increasingly behave like corporate developers. Their real estate strategies—cloaked in the language of public service—have devastating consequences for low-income communities, especially Black and brown neighborhoods near urban campuses.
When universities build workforce housing, they often do so on underutilized or “surplus” land. But in cities where land is scarce, that often means expanding into working-class areas. As higher-paid university employees move in, property values rise, rent hikes follow, and long-standing residents are pushed out.
The narrative of “revitalization” ignores the cost to these communities. It also masks the power imbalance: universities operate without public accountability, shielded by their nonprofit status and backed by powerful financial institutions like JPMorganChase. This is not just housing policy—it’s economic displacement, dressed in institutional branding.
Developer or Educator?
Universities claim that workforce housing improves “town-gown” relations and helps them recruit talent. But Baldwin warns that these justifications often hide a more cynical calculus: expand the brand, grow the endowment, and control the neighborhood. Whether through public-private partnerships or nonprofit intermediaries, universities are carving out real estate empires while sidestepping democratic oversight.
Some institutions purchase existing multifamily housing, like a California university-affiliated nonprofit that bought 120 units for faculty. Others build from scratch, such as a New England campus partnering with developers to erect new housing complexes. In both cases, the university gains influence over local housing markets—without bearing the responsibilities of a traditional landlord or civic entity.
These projects are rarely subject to community input. And when they are, the concerns of low-income residents are often sidelined in favor of institutional priorities. Even well-intentioned efforts risk accelerating the very gentrification they claim to mitigate.
Toward Accountability and Justice
To avoid deepening inequality, universities must fundamentally rethink their role—not just as employers, but as power brokers in urban space. That means moving beyond token stakeholder meetings and isolated affordability set-asides. It means asking who gets to live in a neighborhood, and who gets pushed out.
Baldwin argues for stronger oversight, tax reform, and truly democratic planning processes. Universities should be held accountable for the social and economic impacts of their development—especially when public money, land, or resources are involved.
Mixed-income housing, community land trusts, and partnerships with tenant groups are one path forward. But even these must be guided by the principle that housing is a human right—not a recruitment tool or investment strategy.
Conclusion: A Crisis of Mission
Workforce housing, at its best, is a patch on a broken system. At its worst, it’s a real estate strategy that deepens inequality while shielding powerful institutions from scrutiny. Universities claim to serve the public good—but when they act like landlords and developers, they erode the very communities they’re supposed to uplift.
As Baldwin reminds us, we must resist the myth of the benevolent university. Institutions of higher education are not neutral actors—they are central players in urban displacement and economic exclusion. If they want to help solve the housing crisis, they must start by relinquishing power, paying their fair share, and prioritizing justice overgrowth.
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