It’s no secret that proximity to good schools absolutely plays a role in your home’s value. How much difference does it really make, though?
According to the 2016 School Housing Report, neighborhoods with at least one good elementary school have greater home values and a higher home appreciation in the long term than neighborhoods without good schools near them. A “good school” is defined as having test scores that are 30% above the state average.
In zip codes with at least one good school, the average estimated home value is $427,000, which is 77% higher than the $241,000 national average for home value.
Homeowners in zip codes with at least one good school gain an average of almost $75,000 in value from their purchase and have an average return on investment of 32%. Homeowners in zip codes without good schools still see an average return on investment of 27%, but that only comes out to $23,000 on average.
At the end of the day, great schools have a much larger impact on home values than most people anticipate. Even if you’re a buyer without school-age children, this is an important fact to know. When you eventually sell, you will likely sell to someone that does care about the school district, and will know they have to pay more because of it. Your home is an investment, probably the biggest one you will make in your life. You want to do whatever you can to give your investment a better shot at giving you a good return, and buying near a good school is a great way to do that.
If you have any questions for me, don’t hesitate to reach out and give me a call or send me an email. I would love to hear from you.