The State of the Dance Studio Industry in the 2025-26 Season

There’s something different in the air this year. After several years of uncertainty (adjusting to shifting enrollments, managing rising costs, figuring out how to staff well and stay sane), dance studio owners are starting to exhale. Not completely, but enough to catch their breath before the next wave of challenges.

The data shows real progress. Enrollment is up nearly 10% year-over-year. Tuition rates are climbing, cautiously but confidently. More owners are paying themselves a salary instead of taking whatever’s left at the end of the month. And maybe most importantly, people are beginning to think strategically again, not just reactively.

But stability doesn’t always feel stable. The economy remains unpredictable. Costs are creeping, parents’ budgets are tightening, and many owners (especially those who’ve been doing this for 20 or 30 years) are starting to wonder how long they can keep juggling it all.

Growth That Actually Feels Sustainable… For Now

Studios are growing again, but growth looks different than it used to. It’s less about stuffing the schedule and more about working smarter with what’s already there. Enrollment funnels are tighter. Retention systems are more intentional. There’s an awareness now that growth must match capacity: not just in square footage, but in staff energy, family engagement, and personal endurance.

Larger studios continue to lead in numbers, but smaller programs are holding their own by leaning into what makes them distinct. Community ties, creative flexibility, and personal connection.

The question isn’t “How big can we get?” anymore. It’s “How long can we sustain this pace, and what support might make that possible?”

Pricing With Confidence, Not Complacency

For years, many owners were afraid to raise rates. They worried families wouldn’t accept the increase, or that a few dollars more might cost them loyalty. That hesitation is easing. Nearly half of studios surveyed plan to raise tuition this year, most by around 5%.

The average monthly rate for a one-hour class now sits closer to $70 to $75, reflecting both inflation and a long-overdue recalibration of value. As one owner put it, “Families see dance as an investment now, not just in technique, but in confidence and community.”

Still, costs are unpredictable. Insurance, utilities, and payroll rarely move in sync with tuition. Many owners are finding that keeping up financially takes just as much focus and creativity as teaching itself.

The Parent Experience Is the Retention Strategy

Retention rates remain steady, with roughly three-quarters of recital students re-enrolling each season. But what’s driving that loyalty is shifting.

Studios that communicate well (through apps, parent portals, or even simple, consistent messaging) are seeing the strongest connection. Families want to feel informed and involved. They value being part of something transparent, organized, and personal.

The best-run studios have realized that retention starts with parents, not just dancers. But maintaining that level of service and connection year after year requires bandwidth. And for many owners, bandwidth is the one thing they can’t easily add.

Investing in People, Not Just Programs

Staffing remains the hardest balancing act in the business. Teacher pay has climbed to around $30 per hour, administrative staff to about $19, and most owners are finally drawing a livable salary.

That’s progress, but it comes with pressure. Higher payrolls and limited margins mean every missed class, every unfilled slot, carries more weight. And behind those spreadsheets are owners who are tired. Many have been running studios for decades (leading, teaching, choreographing, mentoring, managing) and are beginning to look toward what comes next.

Their question isn’t whether they can keep doing it all. It’s for how long.

Connection and Education Still Matter Most

Studios that invest in learning, leadership, and professional connection continue to outperform peers. They charge higher tuition, retain staff longer, and manage change more confidently.

But even with the right systems and community, the weight of ownership doesn’t disappear. Many leaders quietly admit they’re balancing two truths: deep love for what they’ve built, and growing fatigue from carrying it alone.

The most successful studio owners are starting to look at growth through a new lens, one that includes legacy, transition, and the health of the person running the business as much as the health of the business itself.

Looking Ahead

The dance studio industry in 2025 is resilient, creative, and undeniably strong. But it’s also standing at a crossroads. The next decade will belong to those who plan ahead, for themselves as much as for their students.

Whether that means expanding, partnering, or simply finding new ways to share the load, the future favors those who design their next chapter intentionally.

Dance education isn’t just surviving. It’s maturing. And the people leading it are doing so with more clarity, compassion, and courage than ever before.

At Ensemble Performing Arts, we live this every day. We work alongside studio owners who are figuring out how to grow their programs without losing the magic that made them special in the first place. Sometimes that means getting their systems in order, helping their team develop, or planning for the future of their business.

Our goal is to give passionate educators the backup and resources they need—whether that means support to keep growing independently or a path forward that lets them step back while preserving everything they’ve built.