You've identified a big part of the problem, but one also needs to consider the overall economic environment during that period. The chart in the blog post starts at 1980, showing that you could work 10 hrs and pay for a credit-hour of tuition. But remember, 1980 was the end of the financially disastrous 1970s. The 80s and 90s were boom decades, so parents with money in the markets were increasingly able to pay for college for their kids. This added to the demand side of the equation, along with the easy money in loans and grants, to cause the explosion in tuition.

You're also right about the buildings and staff bloat. I work at a state university and see all of that happening. The IT organization is honestly twice the size it needs to be, if people were held accountable for being even moderately productive.