A new Gordian report shows college facilities face mounting deferred capital renewal needs, with the renovation backlog reaching its highest level in years. Deferred capital renewal rose to $156 per gross square foot in 2025, up 8% year over year and approaching nearly double 2007 levels. The report also found that spending on existing buildings reached only 73.5% of what is needed to prevent the backlog from growing further, reinforcing a cycle where underinvestment increases future repair risk and cost. Moody’s previously estimated a nearly $1 trillion “hidden liability” in physical capital needs over the coming decade for institutions it rated. With construction activity slowing, many campuses are being forced into “right-sizing” decisions while balancing safety, energy, and compliance priorities amid tight budgets.