A new report from Occuspace, an occupancy intelligence platform, indicates that the average utilization of campus building space in U.
S. higher education institutions fell to 45% in Fall 2025, a notable decrease from 53% in the previous year, highlighting an estimated $79 billion annually spent on underutilized infrastructure.
The 2026 Space Utilization Index for Higher Education, released by Occuspace, reveals a growing disparity between physical infrastructure and the actual needs of students and faculty. With most institutions aiming for utilization rates of at least 70%, the findings suggest a widening gap that impacts operational efficiency and financial sustainability.
Nic Halverson, CEO of Occuspace, stated that the annual expenditure on unused space across higher education is estimated at $79 billion. Halverson emphasized the opportunity for campuses to convert underutilized spaces into assets, particularly as leaders navigate budget uncertainties and evolving enrollment trends. The Index encompassed an analysis of over 40 million square feet across more than 10,000 distinct spaces at over 100 U.
S. university campuses.
The report details specific areas of inefficiency, including a significant classroom capacity gap. During peak instruction hours, classrooms reach an average of only 40% utilization, with usage on Fridays being 28% lower than the Monday through Thursday average. The ‘Hybrid Work’ effect also contributed, with average weekly peak utilization for office space dropping to 52%, a 19-percentage-point decrease from Fall 2024. Office space often constitutes up to 30% of total campus real estate.
Conference rooms exhibited similar inefficiencies, being occupied less than 50% of the workday. Furthermore, 69% of the time small and medium-sized rooms were used, they supported only one person, indicating a potential mismatch between room size and actual requirements. While high-density social spaces like dining halls maintained heavy traffic with 85% peak utilization, recreation spaces experienced a 17-percentage-point drop in usage, suggesting a shift in student leisure activities on campus.
These utilization trends coincide with several overarching challenges facing higher education. The Association of Governing Boards of Universities and Colleges (AGB) has reported a shrinking pool of college-aged students, contributing to a reduced baseline demand for physical space. Concurrently, Moody’s Investors Service estimates that U.
S. colleges and universities require between $750 billion and $950 billion to address deferred maintenance and critical projects. Additionally, a 2025 study by Rize Education indicated that 66% of students desire more online course options, further influencing the demand for physical classroom space.
Occuspace, an occupancy intelligence platform, offers a scalable solution for measuring space utilization in real time. Its AI-powered, privacy-first technology aims to enable organizations to make data-driven decisions that optimize efficiency and improve return on investment. The platform is utilized across higher education, commercial real estate, and government sectors, having been vetted by the U.
S. General Services Administration (GSA) for federal buildings. Occuspace’s objective is to assist institutions in managing their physical footprint for enhanced sustainability and efficiency.
