How Schools Influence Real Estate
According to research from Redfin, similar houses that fall within different school districts may have a price gap of tens of thousands or even hundreds of thousands of dollars. Homebuyers are typically willing to pay a premium in order to secure a home within a desired school district.
The Surprising Research
According to surveys from Realtor.com, homebuyers are so interested in securing a home within school district boundaries that they may prioritize this concern over almost everything else. Some key takeaways:
- One in five buyers would rather live within a good school district than have a garage or extra bedroom.
- One in five buyers would pay 6 to 8 percent more than they had budgeted in order to secure a home in the right school district.
- One in ten buyers would pay 20 percent more for a property in the right school district.
Why Buyers Care
In a Realtor.com survey of 1000 homebuyers, 91 percent reported that school districts played a role in their search for a new home. There are several reasons why buyers care so strongly about school district. Here are a few possible scenarios:
Buyers are starting families. If buyers do not yet have children, they may specifically look for accredited school districts as they prepare to buy their first home. They want their children to have access to the best possible educational support, from preschool onward.
Buyers are moving in order to give their children a better education. Buyers with children may be moving specifically to place their kids in a better school district, which means they may also be willing to pay a higher price for the right location. In some areas, there’s been a recent influx of homebuyers who are so interested in education that they will purchase a home without even seeing the property as long as it falls within specific school boundaries.
Buyers want to protect against market fluctuations. By now, it’s common knowledge that owning a home in a sought-after school district may provide a degree of protection against reselling losses. As a result, buyers may be choosing a home in a particular school district to provide a degree of insurance against price drops in case they decide to sell in the future.
Hero Brothers Homes advises real estate professionals to carefully consider how local school systems may influence prices and buyer interest. Research proves that homebuyers are interested in securing a house in the right school zone, even at the expense of budgetary constraints and other nice-to-have home attributes.