School District Impact on Home Value

The NAR found that 26% of all homebuyers consider school quality important. The organization further found that 42% of homebuyers between 31 and 41 years old — a demographic most likely to have young children — are influenced by school district quality. Online listings of homes in good school districts receive 26 more views than the average listing.  

Families strongly prefer being in areas close to a highly-rated school — within walking distance, if possible. Realtor.com found that, in addition to their values being higher, homes located in high-performing school districts tend to sell eight days sooner than those in other areas. 

Homes in well-performing school districts have built-in value. A large buyer pool seeks them if district test scores, attendance, and graduation rates stay strong. 

When it’s time for homeowners to sell or downsize after their children graduate from high school, they’ll likely find more potential buyers willing to pay more to get their home. Especially if they’ve upgraded or made home improvements throughout their residency, owners may find themselves selling for  higher prices than they originally paid. 

Highly regarded schools can produce a “halo effect” on nearby neighborhoods. They’re envisioned as being more stable, with higher incomes, greater access to valuable resources, and lower crime rates than other neighborhoods. 

Although research tends to support this observation, it’s important to note that it’s largely a perceived effect — not necessarily a proven and verifiable cause and effect. Nonetheless, perceptions like this one can be powerful enough to affect home values regardless of fact.  

Since homes in high-performing school districts tend to be priced higher, property taxes may increase proportionately. Much of the property tax charged in these neighborhoods directly funds nearby schools, allowing them to improve on their already strong reputations.