The Impact of School Districts on Property Values
When searching for a new home, many potential buyers consider a variety of factors: location, size, amenities, and of course, price. But one often overlooked factor that can have a significant impact on property values is the quality of the local school district. Studies have shown that homes located in areas with top-rated schools typically have higher property values than those in areas with poor-performing schools.
One reason for this correlation is that parents are willing to pay a premium to live in a district with highly rated schools in order to provide their children with a quality education. In fact, a study conducted by the National Association of Realtors found that 26% of homebuyers said they would pay more for a home located in a better school district.
But it’s not just parents who are willing to pay more for a home in a good school district. Real estate investors also take school quality into consideration when purchasing properties. A study by the Brookings Institution found that homes located in areas with top-rated schools have appreciated at a faster rate than those in areas with lower-performing schools over a 20-year period.
Furthermore, good schools can attract businesses and increase economic development in an area, which can also drive up property values. A study conducted by the National Bureau of Economic Research found that homes located within a mile of a high-performing school have higher property values than those located further away.
On the flip side, homes located in areas with poor-performing schools can see their property values decrease. A study by the National Bureau of Economic Research found that homes located in school districts with lower-performing schools have lower property values than those in districts with higher-performing schools.
Another factor to consider is the impact of school district boundaries on property values. Homes located in neighborhoods that are zoned for top-rated schools can see their property values increase simply because of their location within the district boundaries. Conversely, homes located on the outskirts of a district with lower-rated schools may see their property values decrease.
In addition to the direct impact that school districts can have on property values, there are also indirect effects to consider. A study by the Lincoln Institute of Land Policy found that homes located within walking distance of a high-performing school can see their property values increase by as much as $50,000. This is due to the convenience and value that living near a good school can provide.
Overall, the impact of school districts on property values is undeniable. Whether it’s the desire for quality education, the attractiveness of a thriving community, or the convenience of living near a top-rated school, there are many reasons why homes located in areas with good schools command higher prices. As buyers continue to prioritize education when searching for a new home, the connection between school districts and property values will remain strong.
