There’s a lot that goes into the purchase of a home in the Columbia area. Savvy shoppers will look for things beyond just the layout and paint color of the home. They’ll look at access to shopping centers, proximity to cultural areas, and some will even consider which schools are in their area.
But are schools really that important when it comes to real estate prices? The answer might surprise you. Join Iron Gate Real Estate as we look at the impact schools can have on home prices.
Schools are a Priority for Homebuyers
In 2017, the National Association of Realtors released an exhaustive study that examined a litany of motivations and priorities for home buyers. The study found that 26 percent of homebuyers consider schools and their quality when looking at a specific home.
This makes sense, especially as Millennials enter the housing market in greater numbers. Currently, this generation is entering its prime earning years and is also at the age when many are starting a family. Knowledgeable buyers are willing to pay more for a home that’s near a promising school with high test scores. The Brookings Institution compared test scores and home prices. After looking at more than 100 of the country’s largest metro areas, they noticed a $205,000 disparity between homes near low scoring schools and those near high scoring schools. The Brookings Institution also found that homes near schools with higher scores have more rooms and that the surrounding community had fewer rentals.
School Spending Impacts Home Value
A variety of studies have found a notable connection between school spending and the value of surrounding properties. In a study completed by the National Bureau of Economic Research, they found that for every dollar spent on schools, the value of nearby homes increased by $20.
Of course, this could be a reciprocal connection in some ways. Generally, more affluent neighborhoods have more money that they can commit to public spending on things like schools. With increased taxes to develop school funds comes an increase in the prices in the housing market around the school. In many cases, it’s often in the interest of the community to invest more in their schooling.
Boundary Systems Can Affect Pricing
Increasingly, communities are relying on a boundary system to ensure that schools have enough students to operate and collect funding, as well as to prevent families from overwhelming the school of choice system. While boundaries may shift as the population of the community changes, they are often fixed for several years. This means that homes within certain school boundaries fetch higher prices. Homebuyers are willing to pay more to ensure that their child has ready access to higher-performing schools.
More Than Just Schools Affect Prices
While the right school can set the right price for a home, there’s more to it than just that, of course. Each community has different housing stock, varying levels of housing density, different businesses and industries, and a range of community taxes and amenities. These factors not only impact the level of support that schools get but also in how much homes go onto the market for.
Meet With Your Columbia Real Estate Agent Today
Looking for a new place to call home in Columbia? Then it’s time to reach out to the talented agents at Iron Gate Real Estate. We pair the latest in technology with time-tested real estate strategies to offer you the best real estate experience possible. When you’re looking for specific features in a home, like quality schooling nearby, you can rest assured that we put your interests first when we help you find a home.