Median home prices in areas with at least 1 school that performed well nearly doubled when compared to zip codes with poorer performing schools—according to a recent report by RealtyTrac.
RealtyTrac’s study reviewed elementary school test scores for almost 27,000 schools in over 7,200 zip codes in the U.S. alongside their corresponding home prices.
Of the 1,823 zip cods that laid claim to at least 1 good school, 65% were unaffordable for average salary earners, which signified that in order to average salaried individuals to afford homes in those areas they would have to spend over 1/3 of their income to purchase a median-priced home.
Metros with the least affordability coupled with good schools included:
- Los Angeles – 184
- New York – 158
- San Francisco – 77
- Chicago – 58
- San Diego – 49
Metros with the most affordability coupled with good schools included:
- Chicago – 179
- Detroit – 44
- Phoenix – 22
- Miami – 20
- Charlotte – 18
The median sales price for homes in zip codes with at least 1 good school ($411,573) was 95% higher than zip codes lacking good schools. Home prices in 2015 saw no difference in increase at an annual pace regardless of whether or not they were located in zip codes that had good schools. Both zip codes with and without good schools saw median home prices jump 7% on average between 2015 and the year prior.
If you’re thinking about purchasing a home in Greater Boston area, does the nearby school district play a major factor in where you plan to purchase?