When searching for a home, many buyers prioritize proximity to top-rated schools, but it comes at a price. Homes near top-rated schools are known to command significantly higher prices, and understanding the cost difference is essential for homebuyers who prioritize education. According to a recent Realtor.com report, homes near top schools can cost nearly 80% more than homes in nearby areas. Despite this, many parents see it as a worthwhile investment for their children’s education and their property’s long-term value.
The Premium on Homes Near Top-Rated Schools
The desire for high-quality education often drives homebuyers to pay more for homes near top-rated schools. A home’s location, particularly in districts with top public schools, plays a significant role in its price. Realtor.com’s research shows that homes within top-rated school districts cost, on average, 78.6% more than homes in surrounding counties. This steep price tag can be attributed to the benefits that come with access to quality education and the assurance of long-term property value growth.
For example, Ron Myers, a real estate agent and investor in Wellington, FL, emphasized the importance of education when he purchased a home for his family. He chose a property in a top school district, seeing it as an investment in his children’s future and the family’s financial well-being. As Myers pointed out, investing in a home near a top-rated school can often yield better returns than paying for private education.
Regional Variations in School District Home Prices
The cost of homes near top-rated schools varies across different regions of the U.S., with Western states seeing the highest premiums. In Los Angeles, for instance, homes near top-rated schools cost 139.8% more than the county average. While this might seem discouraging, bargain opportunities exist for those willing to compromise on certain home features or expand their search radius.
The Midwest, while traditionally more affordable, also sees steep price increases for homes in desirable school districts. In Columbus, OH, homes near top schools are 43.4% more expensive than those in surrounding areas. However, budget-conscious buyers can still find lower-priced homes near Central Elementary School in Hocking County, which offers a more affordable alternative.
In the South, buyers should expect to pay about 76.7% more for homes near top-rated schools. Yet, even in these regions, buyers can find deals. Tampa, FL, for instance, offers several options where homes near top schools can be purchased for less than the county average, presenting opportunities for families seeking affordability.
Compromising on Features to Find Affordability
One of the key findings from Realtor.com’s report is that homebuyers who prioritize education often need to make compromises on home features. To afford homes near top-rated schools, buyers might have to forgo features like a garage, swimming pool, or larger square footage. In fact, homes that are more affordable and located near top-tier schools tend to be smaller or older.
Real estate agent Johnny Austin, based in Tacoma, WA, notes that buyers in school districts with excellent reputations are willing to accept homes that lack some modern amenities because they understand the long-term value these homes provide. This is especially true during market downturns, where homes in top-rated school districts tend to retain their value better than homes in less desirable areas.
Finding Bargains in Expensive School Districts
While the cost of homes near top-rated schools is undeniably high, there are still bargains to be found. Buyers willing to explore different neighborhoods or prioritize certain schools over others can often find homes listed below the average price. For example, in Los Angeles, homes near Oak Hills Elementary School are priced about $131,766 less than other homes in the surrounding county, offering a potential opportunity for families.
Similar deals can be found in other parts of the country, such as the Midwest and Northeast, where homes near certain top-rated schools are priced significantly lower than the county average. By expanding their search radius or compromising on some home features, buyers can still achieve their goal of finding affordable homes with access to high-quality education.
Is the Price Worth It?
Ultimately, while homes near top-rated schools come with a premium, many homebuyers are willing to pay the price for the benefits that come with being in a top school district. Not only do these homes provide access to excellent education, but they also offer long-term financial advantages by retaining and even increasing in value. By carefully considering their budget, compromising on certain features, and exploring various regions, buyers can still find deals in even the most competitive school districts.
