It’s no secret that homes in good school districts come at a premium and can be good investments for people with or without children. Now an article in realtor.com has taken a closer look at just how much you can expect to pay and where the top school districts are located.
An economic research team at realtor.com analyzed data comparing homes in school districts rated nine or 10 with homes in nearby districts where schools were rated six or lower. Apparently, homes in higher rated public school districts are an average of 49% more expensive, at $400,000 compared to the national median of $269,000. They are 77% more expensive compared with lower ranked districts with homes of a median value of $225,000. Additionally, homes in higher rated school districts sell more quickly, on average eight days more quickly than homes in below-average school districts and four days more quickly than the national average.
Homes in higher rated school districts also have more viewings, 26% on average compared to the average home on realtor.com and 42% more than homes in areas with schools rated below-average. The district with the highest premium is Beverly Hills Unified School District in Los Angeles County, California. Homes in this area sell for an average of 689% more than other homes in Los Angeles County, at $3.8 million compared to $550,000. The district with the second highest premium is Highland Park Independent School District in Dallas County, Texas. Homes in this area have an average premium of 632% at $1.8 million compared with the median home price in Dallas County which is just $277,000. Kenilworth School District number 38 in Cook County, Illinois comes in third with a home price premium of 605% and a median listing price of $1.6 million.
Although these areas may have highly rated schools, it doesn’t mean that buyers are rushing out to pay the highest price possible and realtor.com also looked at school districts with the highest demand from homebuyers. In comparison, most of these high demand areas are relatively affordable when compared to the national average, and the top three in demand school districts are Rocky River City School District in Cuyahoga County, Ohio, followed by Clear Creek Independent School District in Harris County, Texas, with School Town of Munster School District in Lake County, Indiana coming in third.