Do Schools Matter?
Yes it does.
All parents want their kids to get the best education possible. The 2 options are to send them to public schools in the district they live in, or a private school. With the cost of private school tuition spiraling up, it is cheaper (especially if you have more than 1 kid) to buy a house in an area with good schools even if the house is more expensive. The increase in monthly mortgage payment is usually lower than the cost of private tuition. And with the ranking and performance of schools easily available online, there is more competition amongst parents who want to get their kids into the best schools. As a result, they are willing, and do bid up the prices of homes (up to 30% more than comparable neighborhoods with poorer performing schools).
So is this a bad thing? Not necessarily. Studies have shown that neighborhoods with great schools will appreciate faster, as well as hold their values better. And while we’re on the topic of schools, here’s a link to a site on school performance.
