Businesses in the Old Cullowhee Road area declined in the late 20th century after it was bypassed by the relocation of highway N.C. 107 in the late 1970s to early 1980s. But, since the 1960s, the development of Western Carolina University has stimulated growth around its large campus. In the 21st century, the university has 12,000 students, and offers a variety of related sports and cultural programs. Cullowhee has also been a destination for retirees and people with second homes, resulting in new residential construction.