Homes near good schools worth more

Key Takeaways

  • The average estimated home value across 1,661 ZIPs with at least one good school was $427,402
  • The average home value in ZIPs that lack high-performing elementary schools is of $241,096.
  • Median home prices in ZIP codes with good schools are up 4.5 percent compared to the same period in 2006.
  • The overwhelming majority (83 percent) of metros showed stronger home values near highly-ranked elementary schools.

Some interesting tidbits in the article: affordability sometimes trumps good schools. Also this:

Attom also ranked the top 10 ZIPs near good schools with median sales prices under $150,000.

Two ZIPs in Chicago made the good school bargains list (60620, 60645), along with 33712 in St. Petersburg, Florida, and 32835 in Orlando, Florida.

Anyone wants to buy rentals in Chicago or Orlando?

I’d skip the rentals in Orlando… If you let them sit empty at all, you’re screwed. Gets too wet.

Nothing new here.

But the question remains: Which comes first? The "good schools’ or, the families that bring educational values with them who move in?

Are there areas in transition?

Chicken or egg? I mean adult chicken and chicken egg :slight_smile:

I maintain investing where schools are improving is key. You should generate superior appreciation to the overall market. Also, you should be able to steadily increase rents. If you pay top dollar for good schools, then there’s a risk if the schools decline. It happened to a friend in Michigan when they launched schools of choice. They started to bus in kids from other areas who had behavior problems and weren’t good students. He sold and moved.

They started to bus in kids from other areas who had behavior problems and weren’t good students. He sold and moved.

Exactly what happened in Antioch with two differences:

  1. Antioch schools were never great. But, they weren’t bad either and,
  2. They didn’t bus in problem children. They bused themselves in. The new high school attracted them. They used BART and bus. The availability of Section 8 housing attracted them in as residents.