New Report Explores Correlation Between School Quality and Home Prices
Waltham, MA – May 30, 2018 (PRNewswire) This month’s Pro Teck Valuation Services Home Value Forecast explores the impact school reputation has on home prices — particularly whether a homebuyer can expect to pay more for a similar home in an area with a good school system.
“One of the biggest reasons people move, in addition to job opportunities and needing more/less space, is because they want a better education for their children,” said Tom O’Grady, CEO of Pro Teck. “But a better education means a certain type of school, and a certain type of school may end up meaning a pricier home.”
To truly see the impact schools have on home prices, Home Value Forecast took a look at neighborhoods split by school systems to see how much school quality impacts residential home prices and how stable those premiums are over time.
For example, HVF looked at a two similar homes in a neighborhood in Cincinnati. The two homes are only two miles apart from each other, but are in different school districts. One home was valued at $137 per square foot, the other at $217 — a 58% difference. The biggest driver in the price difference, according to the analysis, was the quality of education at each school.
Click here to read the entire forecast, including data and graphs that further highlight market trends discussed in this release.
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Home Value Forecast (HVF) is brought to you by Pro Teck Valuation Services. HVF provides insight into the current and future state of the U.S. housing market and delivers 14 market snapshot graphs from the top 30 CBSAs.
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Chicago’s Dunning and Ashburn Top the List, Followed By Squirrel Hill in Pittsburgh
Seattle, WA – Jan. 8, 2018 (PRNewswire) (NASDAQ: RDFN) — Just 25 neighborhoods have a mix of affordable homes, highly rated schools, access to public transit and plenty of inventory, according to an analysis of 80 major U.S. markets conducted by Redfin, (www.redfin.com), the next-generation real estate brokerage.
More than half of the neighborhoods on Redfin’s list of neighborhoods that “have it all” are in the Chicago area, the rare major metro area that has remained relatively affordable and has largely bucked the severe inventory shortage trend seen across much of the country over the past few years. Neighborhoods in Pittsburgh, Cleveland, San Antonio, Dallas, Houston and Miami also made the list. These are places to watch in 2018, when we expect last year’s trend in migration from expensive, high-tax coastal markets like San Francisco, Silicon Valley and New York toward smaller, more affordable cities, to intensify.
Redfin identified the neighborhoods using the following criteria:
Affordability: Zip codes were selected that had a median home sale price below the national median of $291,700.
Home Selling Speed: Several months of falling inventory and strong demand mean the most desirable homes go off the market within days of being listed. Selected zip codes had a median days on market of at least 46.
Highly Rated Schools: Neighborhoods with a GreatSchools rating of 5, which is considered average, or higher were chosen.
Transit: Neighborhoods with a Transit Score® of at least 50, indicating many nearby public transportation options, were included.
Low Crime Rates: Using crime data from BestPlaces, our ranking favored places with lower reported violent crime.
The new tax bill, which caps state and local tax (SALT) deductions at $10,000, compounds affordability concerns, particularly in the high-tax state of Illinois, home to 14 of the 25 highlighted neighborhoods. Redfin agent Alex Haried in Chicago, says taxes should always be considered when analyzing affordability.
“Our general rule of thumb in Chicago is to set aside about 2 percent of the sale price for local taxes each year,” he said. “These are the same taxes that help the city maintain a world-class transit system and help our schools rank highly, so it’s a necessary evil and a big reason why so many Chicago zip codes made the cut.”
Another theme for areas that ranked highly was access to job centers, which is the case for Squirrel Hill in Pittsburgh.
“Relocators have really taken kindly to Squirrel Hill not only because of the affordability, but also the commute,” said Redfin Pittsburgh agent Jennifer Sowers. “Google, Uber and Carnegie Mellon University are large employers in the area and a short commute away via public transit.”
Redfin (www.redfin.com) is the next-generation real estate brokerage, combining its own full-service agents with modern technology to redefine real estate in the consumer’s favor. Founded by software engineers, Redfin has the country’s #1 brokerage website and offers a host of online tools to consumers, including the Redfin Estimate, the automated home-value estimate with the industry’s lowest published error rate for listed homes. Homebuyers and sellers enjoy a full-service, technology-powered experience from Redfin real estate agents, while saving thousands in commissions. Redfin serves more than 80 major metro areas across the U.S. The company has closed more than $50 billion in home sales.
