Buyer’s often ask me to locate them a home in a specific school district. That question is usually followed up with “I know I will have to pay more for a home”. We all assume that owning or buying a home in a sought after school district mean those homes have a higher value. At least to the Buyer and Seller. I ran across this article in The MReport and thought I would share.
School District vs. Home Prices
There’s an often-unquestioned assumption that better quality schools district equates to higher property values, and vice versa. But is it really as simple as that? A recent report by Collateral Analytics (CA) attempted to put that question to the test.
The Collateral Analytics report, entitled “Housing Values & School Quality,” was co-authored by Dr. Michael Sklarz, Dr. Norman Miller, and Dr. Anthony Pennington-Cross. It set out to examine two particular questions: 1) how much does school quality impact residential home prices and 2) how stable are those premiums over time? The report also examines whether any correlation between home prices and school quality. This is also affected by which level of school you’re discussing—elementary, middle, and high school.
According to the Collateral Analytics report, “households will sort into neighborhoods that best match their preferences for local public goods. Households that value the bundle of attributes in a property the most will bid the highest value for the property. One of those attributes is the location. Applying this logic, households that value school quality the most will tend to cluster and live in locations with better school quality.”
To read Collateral Analytics full report on home prices and school quality, click here.
Are you located in a sought after school district?
If you are thinking of selling or buying a home in a specific school district contact us. Let us help you find what is available if your ready to buy. Ready to sell? We will be glad to provide you with a free CMA so you will have a true idea of what your home is worth. We will help you determine the best market value for your home and put together a marketing plan you will be happy with!