Good schools have always been near the top of the list of factors for many prospective homebuyers. However, a new report from ATTOM Data Solutions shows that even people without children may want to consider the local schools when buying a home. The report shows that zip codes with at least one good elementary school had higher home prices and home values than other zip codes.
Looking at the Numbers
ATTOM examined 4,435 different zip codes and studied the 2016 home values and prices while also comparing average test scores for 2015 in local schools. The result was that zip codes where at least one elementary school had test scores that was at least one-third higher than the state average also had home values that were 77 percent higher than zip codes without a school meeting the same standard in test scores.
One of the reasons for this difference in home values is demand. Because good schools are so important to many buyers, and the data on school test scores is widely available, there is more demand for homes in areas with good schools. The stronger demand pushes home prices and values throughout the area higher. The presence of a good school in a zip code is an excellent indicator of the quality of life and type of community a house is in. Even people without children can use the presence of good schools as a factor in deciding where to purchase a home.
Long Term Benefits to Homeowners
The data shows that homeowners in zip codes with at least one good school gained an average of $71,716 in value since the date of purchase, giving them an average return on investment of 32%. The home values in these zip codes are much less volatile in other districts. The presence of good schools acts as a kind of insurance policy against softening home prices because the schools continue to attract buyers to the area.
While the volatility of zip codes without a good school may, in some instances, help homeowners in the short-term, it is harmful to the long-term value of the homes in those areas. When the market falls, there are no extra draws to entice buyers to the area.
Homeowners in zip codes with good schools can expect a steady and strong growth in their home values, make buying a home in these areas a great long-term investment.
You can click here to see how Marin County schools stack-up.
Please see our Market Reports for a complete city by city analysis on the Marin County real estate market.
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