A good school system is often near the top of a homebuyer’s shopping list, particularly when the buyer has young children. Now comes word that good schools may affect home values more than we ever imagined.
A new study by ATTOM Data Solutions looked at homes in zip codes with at least one good elementary school, comparing them to those without. A total of 19,000 schools in 4,400 zip codes were studied. A “good” school was defined as one whose State Department of Education test scores were at least one-third above state average.
Here are ATTOM’s findings as reported in The Council of Resident Specialists magazine:
The average home value in a zip code with a “good” school was $427,400, compared to $241,100 in zip codes without a good school.
Homes in areas with a good school appreciate faster, gaining an average of $74,700 in value since purchase vs. $23,300 in areas without a good school.
Homes near good schools see a better average return on investment (ROI) than those that aren’t. ROI in the former case is about 32%, approximately 4.5% higher than the ROI in areas without a good school.