A resource for potential and current real estate investors.
Tuesday, May 15, 2012
Extra Cost to Live in a Great School District? $200,000
Ever wonder what the average housing cost differential is for homes in high-scoring public school districts vs. low-scoring public school districts? A new report (http://tinyurl.com/bltk4u3) by Jonathan Rothwell of the Brookings Institution breaks down the numbers.
Across the 100 largest metropolitan areas, housing costs an average of 2.4 times as much, or nearly $11,000 more per year, near a high-scoring public school than near a low-scoring public school. This housing cost gap reflects that home values are $205,000 higher on average in the neighborhoods of high-scoring versus low-scoring schools.
Those sorts of numbers should weigh heavily on your home-purchasing decisions. If you don't have school-age kids at the moment, is the purchase price premium and property tax premium really worth it? Another factor to consider is that homes in good school districts will keep their values better even in tough times. With more data, you'll make better informed purchasing decisions. We'll keep sending it your way!