Great Schools, Great Values!

As focus on school performance has become more astute thanks to a rising emphasis on test scores and completion rates, home shoppers have become more cautious in their selections as well.

Homes in the best school districts, on average, sell for higher prices than similar homes in less-popular school districts. A simple analysis might say that good schools are wholly responsible for this added value.Schools

According to the National Bureau of Economic Research, there is a definite correlation between school expenditures and home values in any given neighborhood. A report titled, “Using Market Valuation to Assess Public School Spending,” found that for every dollar spent on public schools in a community, home values increased $20.

Homes in the best school districts, on average, sell for higher prices than similar homes in less-popular school districts.

Consumers are willing to sacrifice certain things to live in the right school district. Some of Realtor.com’s survey results were surprising: One out of five buyers would give up a bedroom or a garage for a better school. One out of three would buy a smaller home.

As data continues to be published about schools’ performance nationwide, the expectation is that the trend will continue, and even increase, on a district, state and national level.

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