The latest Collateral Analytics Research Article analyzes the impact of school quality on home values across the U.S. and specifically how it affects the trends and levels of residential home price premiums over time, Collateral Analytics announced.
Elementary schools may matter even more than high schools in driving locational preferences of home buyers with children. In particular, elementary schools with higher math and language test scores are correlated with more expensive housing, the research reveals.
Using paired samples, many households are willing to pay substantially more to be in better school districts, even 58 percent more in one example for very similar homes.
“Studies have shown that school quality matters a great deal,” Collateral Analytics President Michael Sklarz said in the article. “Households which value school quality the most will tend to cluster and live in locations with better school ratings. This has been known for some time, but our research has enabled us to create a new set of home price series for elementary, middle and high school areas throughout the nation.”