Are you interested in the relationship between American school districts and the real estate market? Can home values drop if a specific neighborhood provides only a public school? Though this topic lacks proper media coverage, it’s intriguing how the vicinity of great schools influences the local housing market.
Therefore, we invite you, dear concerned parent, first-time and experienced homebuyer, seller, or real estate investor, to discover how school districts can impact your property’s value.
Table of Contents
- What are the ingredients that add up to a great neighborhood?
- Explore hidden aspects of the American education system!
- What should parents learn about the high school curriculum?
- Let’s talk honestly about private vs. public schools in the US!
- Are homes in excellent school districts more expensive?
- Which are the top 5 school districts in the United States in 2024?
- 1. Adlai E Stevenson High School District 125 (Lincolnshire, Illinois)
- 2. Glenbrook High School District 225 (Northfield Township, Illinois)
- 3. Evanston Township High School District 202 (Evanston, Illinois)
- 4. Eanes Independent School District (Austin, Texas)
- 5. Township High School District No. 113 (Highland Park, Illinois)
What are the ingredients that add up to a great neighborhood?
Choosing the most suitable neighborhood before relocating to a brand-new American city can be tricky. You should consider several essential factors, such as safety, location, commute time, public transportation, and amenities. Are properties affordable? Will the district undergo retail development in the foreseeable future? Is the local community supportive? Keeping an eye on tax rates and additional costs (like HOA fees) would also be a financially sound idea.
Lastly, if you have children, the quality of the local schools will be a significant factor. Remember, though, that it’s not just about school ratings but also about visiting the schools and talking to other parents about their experiences.
Is this a lot of legwork before finding and moving into your new home? By browsing the real estate agents directory, you can find licensed professionals who can filter the most ideal homes for your consideration!
Explore hidden aspects of the American education system!
To see the big picture of how school districts and property values intertwine, we must first examine the particularities of the US education system. Take a big breath; this will be a more extended (yet eye-opening) analysis from the foundations!
As a parent, you can choose where your kid goes to school in other parts of the world. This liberty implies more control over the education your child receives. Yet, in the States, you don’t necessarily have the same freedom to pick the institution your child will attend.
The geographic location determines your kid’s school district.
American school districts are defined by specific geographic boundaries, much like cities or counties. Your kid’s school is assigned depending on where you live. Thus, you basically have the freedom to select your family-friendly town or city and neighborhood therein. In other words, parents choose elementary, middle, and high schools by choosing where they live. However, there are additional aspects to consider.
The size and number of school districts can vary greatly. Some districts cover entire counties (especially in rural areas), while others may cover just part of a city or town. Large urban areas might feature multiple districts within the city.
When school performance doesn’t matter, only passing grades.
Unlike its European counterpart, the US education system offers a unique (and flexible to a fault) approach to grade progression. After completing elementary school (grades 1 to 5) and three years of middle school (grades 6 to 8), your child will attend four years of high school (grades 9 to 12).
If a student needs more school credit to pass a grade level, they are not required to repeat the same grade next year. Instead, they can attend summer school and participate in classes to advance to the next grade. However, it embeds an inherently misguided idea.
The particular school isn’t significantly invested in how well its students perform. It is interested in teenagers passing every grade and ultimately graduating high school. Yes, this presupposes that as long as the student graduates, passing with an A equals passing with a C in the eyes of the institution. This phenomenon is particularly noticeable in the worst states for education in America. You can already see how the institution’s investment in its students’ progress sets the value of a given school district.
Which schools have tuition fees?
Suppose your kid attends a public elementary, middle, or high school. In either case, parents don’t have to pay a tuition fee. Taxes pay for public schooling. Local property taxes and state and federal funds mainly finance school districts. Because funding heavily relies on property taxes, the district’s wealth can affect the resources and quality of education provided.
What happens with the tuition fee if your cub goes to a private school? Then, tax dollars don’t cover the cost. As a result, you, as a parent, must pay for their education from your budget. In addition, any education after high school (be it a community college, private or public university, or technical school) is chargeable for a considerable fee.
What should parents learn about the high school curriculum?
High schools offer a variety of curricula to cater to different student needs. The eternal question arises: Should your kid choose education or skill acquisition? Some students prefer more technical classes to enter the workforce sooner after high school. Others may opt for general courses designed for those planning to attend college.
It’s also worth mentioning Advanced Placement (AP) classes, which provide a university-level curriculum and exams tailored for high school students. Did you know that universities and colleges can offer placement and credit to students with qualifying AP exam scores?
What type of activities must a school guarantee for your kid’s healthy progress?
Contrary to public belief, higher education acceptance isn’t solely based on grades! Students must also engage in other activities, such as community involvement and extracurricular activities like arts or sports. These activities can lead to leadership positions and awards, which higher education institutes appreciate. They not only build character but can also enhance a university’s or college’s reputation. It’s a win-win scenario. In this context, applying to a university is similar to applying for a job. Only the best candidates will be considered.
Why do I share these things? You, being a parent, have the responsibility to uncover such information. Unfortunately, our education system often fails to equip our kids for adulthood. Thus, you must ask yourself (and your child’s new school) the following questions.
Does it provide sufficient information and transparency regarding its curriculum? Can it provide the necessary facilities and equipment for its students’ optimal development? Does it show proper dedication to your children’s progress? If it does, you have yourself a winner! On the downside, you should expect slightly higher home values and living costs near exceptional school districts.
Let’s talk honestly about private vs. public schools in the US!
Everyone in the States has a specific idea about the difference between private and public schools. Now is the time to deepen our understanding! Does every student receive the same education in these institutions? Younger children will have the same education. However, differences will be apparent once they enter middle and high school.
I don’t wish to question the merits of public schools. Still, they’re no longer what they used to be because they can’t provide the same conditions. Should you consider enrolling your child into a private school, even if it involves slightly higher expenses?
Crunching the numbers: private school tuition vs. state funding
In 2023, the US hosted about 32,460 private schools (as opposed to 97,570 public schools), with nearly 5.75 million students attending (approximately 10 percent of all students in America). Which states have the highest enrollment in public schools?
- California, with 6,86 million students. 2 Texas (5.84 million); 3. Florida (3.38 million); 4. New York (3.17 million); 5. Illinois (2.24 million)
Most private schools are small and manage their finances by raising money and getting tuition. Ed-data.org reported that the average cost of private school was $12,350/year in 2023. Connecticut emerged as the most expensive state for K-12 private schools, with an approximate annual tuition of $24,000. At the same time, Wisconsin had the lowest average private school fees, with $3,550.
Analysts broke down public school “fees” by dividing the $640 billion total taxpayers pay to the government by the number of children attending these schools (about 50.6 million). The result was an annual fee of $12,648. Therefore, the tuition fees were basically the same in the two instances. Why is there such an alarming discrepancy between the two types of establishments?
Why are private better than public schools?
First, in public schools, classes are overcrowded as there are 16 pupils for every teacher. Simultaneously, this ratio at private schools is 12 to 1. Consequently, students receive more attention in the latter. This extra time and engagement alone assures better progress and improved career options for your children (even in a real estate-affiliated position).
Secondly, private schools have better technical facilities than public institutions. Parents pressure the former for better investments, and the board of education must listen to them because they’re paying the big buck. Conversely, public schools typically don’t consider parents’ input because they receive funding directly from the government.
Thirdly, public safety is enhanced in private schools. Fourth, teachers in public schools are chronically underpaid. As a result, they might lose some of their driving motivation. Since they need more staff, they are prone to hiring undertrained teachers.
Thus, I recommend finding the necessary financial means, preferably a secondary income or recession-proof investment opportunities. Your children will benefit from a better learning environment in a private institution.
Are homes in excellent school districts more expensive?
Understanding the local real estate market is indispensable before moving in. A property’s value depends on several factors, its school district being one of them. So, yes, a school district’s reputation (or ill fame, for that matter) can directly affect home value. Simply put, schools in outstanding districts get better reviews and more funding, encouraging families to buy homes in that area. In less impressive regions, a home’s worth may drop if the school is poorly rated. A school’s reputation and funding directly correlate with the neighborhood’s real estate potential, and for good reason.
Should you buy or invest in real estate near a good school district?
You might wonder why there is all the fuss about school districts. Consider these points!
First, homes in top school districts often sell for a premium. Many families want to provide their children with the best education. So, they invest in homes in neighborhoods where these excellent school districts are represented. As a result, such investments are foolproof and stand the test of time. Above all, however, knowing your kids get a good education is priceless!
Secondly, their resale proceeds are off the charts! It’s easier and often faster to sell homes in good school districts.
Which are the top 5 school districts in the United States in 2024?
A great school district means better education, higher property values, and peace of mind. If, due to various reasons, you still opt to send your children to a public school, you have a broad spectrum to choose from. Based on Niche’s 2024 ranking, I explored the top five school districts in the States. Let’s see what domains they excel in and how school performances impact the immediate real estate market!
1. Adlai E Stevenson High School District 125 (Lincolnshire, Illinois)
This might surprise you, but Adlai E Stevenson only runs two schools. However, what it lacks in numbers, it makes up for in quality. This district boasts some of the highest test scores in the country. Why is it so phenomenal? First, it boasts outstanding SAT (about 1,350) and ACT scores. Second, it offers lots of choices regarding AP courses for college-level studies. Third, it has plenty of extracurricular activities, such as clubs and sports teams.
Paradoxically, the local real estate market is far from exuberantly high. The median real estate sale price in Lincolnshire, Illinois, was $415,000 in March 2024, 41 percent more affordable than a year before! If I were an investor, I would contact real estate agents in Lincolnshire, IL, to bring me up to speed with a reasonably priced home close to Adlai E Stevenson High School.
2. Glenbrook High School District 225 (Northfield Township, Illinois)
Glenbrook includes Glenbrook North and Glenbrook South High Schools. Both have excellent reputations. Students here perform well academically, and the district strongly emphasizes college readiness.
Above-the-average SAT and ACT (around 25-30) scores further improve the institution’s prestige. The school also focuses on preparing students for higher education and showcases state-of-the-art facilities and resources.
The median home sale price in Northfield Township, Illinois, was $970K, about 140 percent higher than in 2023. In Q2 2024, the real estate market is mildly competitive, and homes sell fast, on average, in 52 days. Expert realtors in Northfield Township, IL, can convince you that buying a property will be a terrific investment!
3. Evanston Township High School District 202 (Evanston, Illinois)
A single-school district, Evanston Township High School (ETHS), stands out as one of the best in the Land of Lincoln. ETHS offers a rich curriculum, abundant extracurricular opportunities, and a diverse student body. It’s known for its strong emphasis on social justice and student support services. Did you know it boasts a graduation rate of over 90 percent?
The median home sale price in Evanston, Illinois, was a mere $403,000. The town’s housing market is relatively competitive, so buyers should expect higher prices if they postpone moving to this lovely town of 73,000 residents. Considering ETHS’s fantastic reputation, I recommend investing in its affordable real estate market.
4. Eanes Independent School District (Austin, Texas)
In sunny Austin, Eanes ISD serves around 7,800 students in ten schools. The district hosts six elementary schools, two middle schools, and one high school. An extraordinary Adult Transition Services (19+) program was recently launched. Westlake High School, the district’s crown jewel, is acclaimed for its remarkable academic and athletic programs. Plus, it boasts a graduation rate of 99 percent!
What makes Eanes Independent School District a compelling choice? It’s the sense of community that I’ve observed here. Our district is about more than just delivering high test scores and graduation rates year after year. It’s about creating a close-knit, supportive environment where your child can thrive. And if your child is interested in competitive sports, joining one of our teams could open doors to prestigious universities.
The median property sale price in Austin, TX, was $550,00 in Q1 2024. We know Austin’s top-notch economy and incredible education system guarantee the best outcome for your kid’s future. Furthermore, your investment will be in safe hands. For great housing deals, I recommend reaching out to realtors in Austin, Texas!
5. Township High School District No. 113 (Highland Park, Illinois)
This Illinois district includes Deerfield High School and Highland Park High School. The outstanding school district serves Highland Park, Highwood, Deerfield, Riverwoods, and Bannockburn. Both schools have solid academic programs and offer a wealth of extracurricular activities. The district has gained a well-deserved reputation for producing successful students by focusing on their holistic development.
The median property sale price in Highland Park, Ill, was approximately $715,500 in March 2024, 42 percent higher than in 2023. The moderately competitive local real estate market shows signs of rebirth, with property prices rising gradually in Q3 2024.
The bottom line
If you have children or plan on having kids, ensuring they get a comprehensive education is necessary for their growth and development. However, finding the right school district often tops the charts of house-hunting priorities. In exceptional cases, parents must choose the best place for their special needs children and disregard typical housing preferences.
I discovered a fascinating dynamic as I delved into the intricate relationship between school districts and real estate markets. While there’s no one-size-fits-all formula for how a good school district impacts a home’s value, it’s a fact that homeowners and their agents leverage the prestige of nationally acclaimed schools in their neighborhoods. Properties near these schools often command higher prices, making them a lucrative investment for savvy buyers and investors.
While I favor private schools for their educational advantages, I recognize that not everyone has the financial means to consider this option. For those in this situation, I’ve researched and presented the top five public school districts that offer quality education, ensuring that every reader feels included and respected in this discussion.
These districts not only promise a rock-solid education but also tend to boost property values. Ultimately, they become the most intelligent pick for concerned buyers and investors. Investing in a home in these districts is more than buying real estate. It’s investing in your child’s future.
How is the school district in your area? Which one do you hold in high regard? Is the present situation of neighborhoods being connected to school districts fair? I would like to hear your opinion in the comment section below! Please share and like this article!
This is a blog to watch for sure. I think you have a really awesome writing style by the way. Very easy to read. Your blog design is so clean too! Thank you all the hard work!
Hi, Brian! Thank you for reading our blog! Don’t hesitate to check out our latest real estate articles!