Drake University Generates $424 Million Economic Impact Across Iowa

Private University Powers State Economy Through Multiple Channels

Drake University had an economic impact on the state of Iowa of nearly $425 million in fiscal year 2025, according to a report released by the private university Thursday. The comprehensive study reveals how the Des Moines-based institution has become a significant economic engine, generating far-reaching benefits that extend well beyond its campus boundaries.

The "Economic and Community Impact Report," prepared by Impact DataSource, LLC, in working with Drake University, details the financial impacts the university has created through student spending, employment, visitors to campus, community service, tax revenue and alumni contributions. Total economic impact by the university comes out to $424.1 million, according to the report, spread out across the city, county and state levels, including $270.8 million "value added" and 2,655 jobs.

Tourism and Events Drive Visitor Spending

Drake University continues to be a major tourism draw for the metro area, attracting nearly 268,000 visitors who accounted for 283,588 visitor days in 2025. These visitors aren't just passing through – they're spending substantial amounts that ripple through the local economy.

The report also estimated $31.9 million generated through visitor spending. Athletic events brought in $12 million, $7.3 million directly from the annual Drake Relays, and visitors spent $7.5 million on local lodging. The iconic Drake Relays alone demonstrates the university's ability to draw national attention and economic activity to Iowa's capital city.

Of the 4,204 students reported in the study, spending generated from the population totaled $54.6 million, according to the report, and $120 million in worker earnings were made by 809 faculty and staff members. This student and employee spending creates a steady economic foundation that local businesses can count on throughout the year.

Alumni Create Lasting Economic Foundation

Perhaps the most impressive long-term impact comes from Drake's graduates who choose to remain in Iowa. While 43% of the student body came from Iowa in this time period, the University's deep community roots inspired them to stay, with 57% of all Drake graduates choosing to launch their careers here in Iowa. This "brain gain" phenomenon directly counters the typical pattern of young talent leaving the state.

More than 27,000 Drake alumni work in Iowa, the release stated, adding an estimated $6 billion to the state's GDP annually. These professionals fill leadership roles across industries, from corporate boardrooms to nonprofit organizations, strengthening Iowa's economic infrastructure for decades to come.

Drake students and faculty also provided 246,382 hours of "volunteerism, community service, and pro-bono client work," the release stated, spanning clinical health services, student teaching, counseling internships, small business consulting, communication and PR and the Drake Legal Clinic and valued at more than $11 million.

Strategic Investment in Iowa's Future

This includes $12.6 million in annual tax revenue for the City of Des Moines, $4.5 million supporting Polk County, $10.8 million for the State of Iowa, $9.8 million supporting the Des Moines Public School district, and $10.1 million supporting other districts. These tax contributions directly fund essential public services, creating a multiplier effect that benefits all Iowans.

"For decades, our faculty, staff, students, alumni, and fans have contributed extensively to the prosperity of our vibrant neighborhood and the state we proudly call home — not just from an economic standpoint, but through hundreds of thousands of hours of community service each year," said Drake University President Marty Martin.

The study positions Drake as more than just an educational institution – it's a cornerstone of Iowa's economic development strategy. As other states compete aggressively for young talent and business investment, Drake's ability to both attract and retain skilled professionals gives Iowa a significant competitive advantage in building a knowledge-based economy for the future.