Private K-12 Schools
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 30,000 private K-12 schools in the US provide basic preparatory education for children in kindergarten through 12th grade. Elementary schools typically include grades kindergarten through six. Secondary schools typically include grade seven through twelve. Combined schools offer elementary and secondary education. The vast majority of K-12 private schools are non-profit organizations and about 66% of them are religion-based.
Dependence on Skilled Staff
Private school families expect high quality education from qualified, experienced teachers.
Competition from Alternative Education
In addition to standard public schools (which are free), private schools face competition from a variety of alternative sources, including charter schools, magnet schools, and home schooling.
Industry size & Structure
The average private K-12 school operates out of a single location, employs 10-26 workers and generates over $1 million in annual revenue.
- The private K-12 school industry consists of over 30,000 schools that educate over 4.7 million students and employ about 481,000 teachers, according to the National Center for Education Statistics Private School Universe Survey.
- Although tuition can vary significantly, average tuition is about $7,700 for elementary schools, $13,030 for secondary schools, and $13,640 for combined schools.
- The vast majority of K-12 private schools are nonprofit organizations.
- Most private schools are small institutions. About 21% of private schools have less than 150 students; 25% have between 150 and 299 students; 20% have between 300 and 499 students; and 34% have 500 students or more.
Industry Forecast
Private K-12 Schools Industry Growth
Recent Developments
Apr 3, 2024 - Moderate Revenue Growth Expected
- Private K-12 school revenue is forecast to grow at a 4.33% compounded annual rate from 2022 to 2027, comparable to the growth of the overall economy, according to Inforum and the Interindustry Economic Research Fund, Inc. Sources of revenue for private schools include tuition, private grants, donations, fundraisers, and income from endowments. Industry employment increased moderately during 2023, according to the US Bureau of Labor Statistics.
- Some 45% of private schools reported enrollment increases during the 2022-2023 school year, according to a survey from the Cato Institute think tank. About 25% saw decreases and 30% reported no change. About 88% of private schools reported either having never closed during the COVID-19 pandemic or reopening in spring or fall of 2020, earlier than most public schools.
- FutureEd has identified 90 private-school-choice bills in 31 states that have been introduced or pre-filed so far in 2024. Most aim to broaden private-school choice options but a few seek to scale back such programs. More bills supporting school choice are expected in the coming months, particularly in Republican-led states where choice bills failed last year or where lawmakers have yet to extend private-school-choice eligibility to all students. Last year was a record year for private-school choice, with 17 states enacting legislation to either establish or expand programs. Eight of these states—Arkansas, Florida, Indiana, Iowa, North Carolina, Ohio, Oklahoma, and Utah, adopted universal or near-universal eligibility, bringing to ten the number of states with universal programs.
- Families reacting to post pandemic woes and an influx of voucher funds are increasingly turning to the growing number of so-called microschools, which often serve between five and 25 students, according to The Wall Street Journal. Approximately 125,000 microschools exist across the US, according to Don Soifer, chief executive of the National Microschooling Center. Microschools likely serve between one to two million students, said Michael McShane, director of national research at school choice advocacy group EdChoice. New voucher laws in some states provide more families with state funds for private-school tuition or home schooling and other academic expenses. The additional funding is helping to finance the growth in microschool enrollment, according to The Wall Street Journal.
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