Housing data firm’s research shows homes near good elementary schools are valued 77 percent higher
- homes-near-good-schools-worth-more 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.
- Real estate agents can agree that high-performing school districts make for good home investment locations.Many homebuyers figure good schools make for stronger demand at resale, and Attom Data Solutions’ Schools and Housing Report shows that ZIP codes with at least one good elementary school truly do hold higher home values.
The average estimated home value across 1,661 ZIPs with at least one good school was $427,402 — or 77 percent higher than the average home value of $241,096 in the remaining ZIPs that lack high-performing elementary schools.
- Intuitively, buyers already know that schools are important when buying a home, even if they don’t have school-aged children. It’s a nice amenity to have for quality of life,” said Daren Blomquist, senior vice president at Attom.“But this data proves that there is a tangible financial impact that good schools have on home values and home price appreciation over time.”
In order to school rankings and nearby home values, Attom considered good schools to hold test scores 33 percent higher than the statewide average.
Compared to 2006, year-to-date median home price in ZIP codes without good schools is 1 percent less. But, median home prices in ZIP codes with good schools are up 4.5 percent compared to the same period in 2006.
ROI typically stronger near good schools
Since purchase, homeowners near good schools have gained an average of $74,716, or a 32 percent return on investment (ROI). The average ROI for homes farther from highly rated schools is 27.5 percent, or $23,311.
Homeowner ROI in ZIP codes with at least one good school was 3.1 percent higher in San Francisco and 6 percent stronger in New York. In Miami and Chicago, good school ZIP code ROI was 6.7 and 5.9 percent higher, respectively.
In the Houston metro area, the difference in ROI was a staggering 773.9 percent — favoring the good school ZIPs.
On the other hand, Los Angeles and Washington, D.C., showed stronger ROI in ZIP codes without at least one highly-rated school. In both metros, ROI was 4.2 percent higher in ZIPs outside of the good school district.
Blomquist says in these metros specifically, home prices may be lower in ZIP codes without a good school, but those areas are in higher demand right now. Affordability has somewhat outweighed the school affect in certain metros.