Home values can get a big increase from having a highly rated school nearby. According to the new ATTOM Data Solutions 2016 Schools and Housing Report, homes in ZIP codes with at least one good elementary school have values about 77 percent higher than in ZIP codes without highly ranked schools close by.
Researchers looked at home values and price appreciation against 2015 average test scores in nearly 19,000 elementary schools across 4,435 ZIP codes. They considered a “good school” to be one that had an overall test score that was at least one-third above the state average.
The research team found that out of 1,661 ZIP codes with at least one good school, the average estimated home value was $427,402 – 77 percent more than the home value of $241,096 in 2,774 ZIP codes without any “good schools.”
“While good schools are one of the top items on most homebuyer checklists because of the quality-of-life benefit they provide, this report shows that high-performing schools also come with a financial benefit for home owners in most markets – at least over the long term,” says Daren Blomquist, senior vice president at ATTOM Data Solutions. “Meanwhile, home prices in ZIP codes without any good schools tend to be more volatile, which might work to a home owner’s financial benefit in the short term but not over the long term of at least 10 years.”
Home owners living near at least one good school have gained, on average, $74,716 in value since purchase — an average return on investment of 32 percent, the study found. On the other hand, home owners in ZIP codes without any good schools have gained, on average, $23,311 in value since their purchase, an average return on investment of 27.5 percent.
The Cascade Team has made it easier than ever to learn more about your local schools and neighborhoods. Our School Reports include both public and private schools and make it easy to compare them side by side. Community Reports are filled with all kinds of useful information to compare and help you make informed decisions about where to live.
Homeowners gained $51K more since purchase in zips with good schools
Homeowners in zip codes with at least one good school have gained an average of $74,716 in value since purchase, an average return on investment of 32.0 percent. Meanwhile homeowners in zip codes without any good schools have gained an average of $23,311 in value since purchase, an average return on investment of 27.5 percent.
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