The backlog of deferred maintenance and renovation projects at U.S. colleges and universities has reached its highest level in years, reflecting mounting financial pressures and aging infrastructure across campuses, according to a new report.
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Data from Gordian shows that deferred capital renewal — which includes major upgrades such as roofs, mechanical systems and building improvements — climbed to $156 per gross square foot in 2025. That marks an 8% increase year over year and nearly double the level recorded in 2007.
At the same time, institutions are investing far less than what is needed to keep pace with deterioration. Current spending on existing facilities meets only 73.5% of required levels, allowing the backlog to continue growing. Gordian said the data “tells a story of structural underinvestment colliding with an accelerating pace of institutional change.”
Industry analysts warn that postponing maintenance can create a compounding cycle of higher costs and operational challenges. As institutions delay upgrades due to budget constraints, facility conditions worsen, ultimately requiring more expensive repairs or replacements.
A 2024 analysis by Moody’s Ratings estimated that colleges face nearly $1 trillion in deferred capital needs over the next decade — a “hidden liability” that could drive increased borrowing as schools attempt to address long-standing maintenance gaps.
Gordian echoed those concerns in its latest report.
“The sustained underinvestment continues to add to the embodied debt obligation in higher education facilities,” said Pete Zuraw, vice president of market strategy and development at Gordian.
Financial strain is a key factor behind the growing backlog, with many institutions facing what the report described as “extraordinary stressors,” including rising costs, enrollment pressures and shifting operational priorities.
The report also highlights a significant slowdown in new campus construction. Growth in college facilities has fallen to its lowest level in four decades, signaling a shift in how institutions approach capital planning.
Rather than expanding aggressively, many schools are reevaluating long-term space needs in response to projected declines in traditional college-age populations.
“Schools appear to recognize the real threat of being overbuilt for the likely community population moving forward,” Zuraw said. “This ‘right-sizing’ is bold and courageous in the face of a history which has asserted strongly that not growing is dying.”
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However, experts caution that failing to invest in either new construction or existing facilities could weaken institutions’ competitive position.
According to Moody’s analysts, colleges that cannot offer modern facilities, updated technology and appealing campus environments risk losing students in an increasingly competitive higher education market.
Arul Elumalai also warned of broader operational risks tied to deferred investment.
“Without sustained and strategic reinvestment, institutions risk deeper operational challenges,” he said in a statement.
As colleges navigate financial constraints and demographic shifts, the growing backlog underscores a critical challenge for facility managers and construction stakeholders: balancing limited resources with the need to maintain safe, modern and competitive campus environments.
Originally reported by Ben Unglesbee, Senior Reporter in Construction Dive.
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