You are thinking about moving houses, which is exciting! What excites you less is looking at home prices, especially near a new school district.
A school district and school ratings may have a part in property value. Due to this, you may find Staten Island real estate home prices vary depending on what school district your home is located in.
Learn about schools’ financial influence and the proximity of a home to a school district in this guide!
The Effect Affluence Has on Property Value
The rumors are true: if a school is more affluent, the residential properties are priced higher.
If you are looking at sending your kids to public school instead of a private school, you can avoid the price of a private school by allocating more of your money toward buying your new home. You may save up to $20,000 by sending your children to public school instead of private school.
The Effect Test Scores Has on Property Value
In addition to affluence, test scores are a way to measure property value too. If a school district has excellent test scores, that school is a hotspot for education. Because of that, more people may flock to move their families into homes near the school.
Economists have estimated that even a 5% increase in test scores will raise a home’s price within the said school district by 2.5%. Strangely, test scores can significantly affect residential home prices in a school district where students do well on tests.
The Effect of a New School on Property Value
Home prices are tricky to measure if you think about moving into a residential area near a new school. There are some factors to consider.
A new school may mean it is still under construction and working out kinks in its academic structure. Because of this, students may find themselves distracted and not perform well on tests, like this study in Ohio finds. There are also additional things to consider nowadays, such as the impact of the COVID-19 pandemic on test scores.
Regardless, the housing market is evolving, so it is best to stay up-to-date with current trends.
The Effect of Living Close to a School
Living close to a school has its advantages when looking to either list your house or buy a new one.
If your home is located close to a school, home prices are much higher than a home located further away. Proximity is everything for families with school-age children, but not everyone can afford a house next to a school.
Home Prices and School Districts
School districts affect home prices for the houses around them. If a school district is more affluent, property value increases. For schools with excellent test scores, property value also increases because people want their students to attend a school known for its academics.
Living next to a new school or close to a school can have both pros and cons. Consider your move carefully.
Contact us for more information about homes in great school districts!
Wonica Realtors & Appraisers are Staten Island’s #1 independent full-service real estate firm, serving the community’s needs for over 30 years. Whether you are buying, selling, renting, or relocating, our staff of highly trained professionals will provide quality realty services with personal attention to your individual real estate needs.