College Tuition Price Increases vs the Housing Bubble

If You Thought the Housing Bubble Was Bad… « The Enterprise Blog.

A central component of Spokane‘s industrial cluster is its higher education programs at EWU, Gonzaga, Whitworth, SCC, SFCC and the just announced major expansion of WSU-Spokane to focus on “health sciences“.

Higher education, however, is undergoing a “bubble” far larger than that just experienced in housing, as shown in the above chart. The price of tuition has risen by more than a factor of 10 between 1978 and today. In the past year, college tuition prices have increased by “more than 4 times” the rise in consumer prices (inflation).

The obvious concern is that this higher education bubble is going to pop. This curve is not sustainable and as noted elsewhere, the economic justification for spending $200,000 to earn a liberal arts B.A. at NYU that results in a job paying $35,000 per year, is questionable. (Click the link – the people who did it now question those choices.)

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