It’s Elementary: School Districts and Housing Prices
Where’d you go to High School? Although a peculiar question to ask a stranger – every St. Louis native knows to expect it upon meeting new people in this city since we place a great deal of pride and value in our education.
But to live in a top performing school district comes at a price.
According to Redfin, an online real estate brokerage, “you can expect to pay an extra $50 per square foot for homes in top-ranked school zones compared to homes served by average-ranked schools.”1 Redfin conducted a study earlier this year from May 1 to July 31 and compared median sale prices of similar homes in the same neighborhood that fell within the boundaries of different elementary schools.a
Although homes were expected to be a bit more expensive in top-rated school districts, the results from the study showed there was a larger gap than anticipated.
Is the investment worth it?
There is no right or wrong answer because each homeowner is going to have different priorities, and we all have our own preferences.
Figuring out which neighborhood has the best balance of quality education and reasonably-priced homes can be quite a challenge, but STL Real Estate recommends you first start by finding the right area. As the saying goes ‘location, location, location.’ You should seek out areas that make you feel comfortable and offer activities and the lifestyle you enjoy, not to mention has homes available within your price range. When you find the right area, you’ll find the right home for all your needs.
Be sure to consult with your STL Real Estate agent if you have questions on school districts, as they know the St. Louis area the best.
a School and home coverage consisted of 10,811 elementary school zones across 57 metro areas and included 407,509 home sales. The study included public schools only and Redfin received information about schools and test scores from Onboard Informatics, Maponics LLC and GreatSchools, an online nonprofit that provides digital resources to help parents and schools raise expectations for improved higher-quality education.
1 Tommy Unger, Affording a House in a Highly Ranked School Zone? It’s Elementary, Redin, http://blog.redfin.com/blog/2013/09/paying-more-for-a-house-with-a-top-public-school-its-elementary.html#.Uou4-WTk_U8 (accessed November 19, 2013).