School quality is an important factor for families moving from one school district to another, and competition for homes within the most popular districts could impact housing market dynamics as parents seek the best opportunities for their children.
But living in the highest-performing districts comes at a price, according to a Realtor.com analysis. The average median list price in the highest-rated areas reached $1.21 million between May and June, 125% higher than the average in their surrounding metro areas. Within popular school districts with lower average school ratings, the median list price premium was lower at $642,846, a premium of 29% relative to surrounding areas.
The analysis examined views per property from out-of-district home shoppers from May to July to identify the most popular school districts in each metro area.
Among the top areas, 20% are located in midsize suburbs, towns and rural areas that offer both quality education and a high quality of life, a shift from traditional metro-centric school shopping, according to the analysis.
The highest-rated school district according to Realtor.com’s analysis is Carroll Independent School District in Dallas. Homes in the market listed with a 390.9% premium at $1.7 million. Laguna Beach Unified in Los Angeles came in second with a 322% premium compared with surrounding areas with a median home price of $3.8 million. Reed Union Elementary in the San Francisco Bay area was third with a 304.7% premium, hosting a median of just over $3 million.
Ladue School District had the highest premium in the St. Louis metro at 222.8%, averaging $668,297, and New Hope-Solebury School District had the highest in the Philadelphia metro at 223.9%, with a median of $863,767.
“While providing the highest quality education is a dream for many families, affordability remains a real concern,” said Realtor.com. “As a result, some of the most popular school districts aren’t necessarily the highest-ranked, but rather those that strike a balance between strong academics and attainable housing costs.”
Morgan Hill Unified School District, for example, is the most popular district in the San Jose metro area, even though Palo Alto Unified has a reputation for exceptional academic quality. The median list price of $1.5 million in Morgan Hill is a more affordable option than Palo Alto, which has a median price tag of more than $4.1 million, but still provides access to highly rated schools, according to Realtor.
Realtor.com found four school districts that have median list prices lower than their surrounding metro areas: Johnston County School District in Raleigh, Trenton Public Schools in Detroit, Humble Independent School District in Houston and Palm Beach County School District in Miami.
“While these districts offer strong schools and desirable lifestyles, their suburban or rural locations result in more affordable supply and less pricing pressure compared with more established or urban districts within their metros,” Realtor explained.
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