Strong public schools are an important facet of any housing market.
The difference between a good elementary and a great elementary school can translate into thousands of dollars. Home buyers will stretch their budgets $10,000 to $15,000 more to get into an area where the schools have been ranked high academically.
Good schools equate to a more vibrant community. If the real estate market is hot in a particular area… so is the local economy.
It has been shown that there is a definite correlation between the school system and the real estate market.
The Rand Corporation did a study for the city of Santa Monica, Calif., and found four major impacts made by the school system on the community. They were housing values, crime rate, tax revenues and civic participation.
There was also strong evidence that the quality of education impacted the physical and mental health in the community. A one-year increase in the average education levels showed a substantial reduction that same year in major crimes – 27 percent fewer murders, 30 percent fewer assaults and 20 percent fewer motor vehicle thefts. The study noted that a 1 percent increase in the average school district reading or math scores equated to a .5 percent to 1 percent increase in property tax revenue. The higher the housing values, the higher the property tax revenues are for the community. Schools definitely impact our community.
Another impact comes from our community leaders. They must be made aware of a very dangerous term, “student mobility.” This refers to the phenomenon of students changing schools for reasons other than grade promotion. Frequent movement of students from school to school puts those students at greater risk for academic and behavioral problems. Many drop-out students have been victims of frequent school change. Housing is the most important issue that must be addressed with this critical problem. Often times, a family moves due housing being cheaper for the family.
When this movement occurs and schools end up with a 40 to 60 percent mobility rate, the quality of the education for all students in the system are impacted.
Being in real estate for 40-plus years and raising several kids, I know how important schools are to the community. It is so essential for the community leaders, the school system and the real estate companies that operate in that community to work together to preserve high academic standards for our clients.
We all must remember that students are clients; the citizens who live in our area are clients; and new buyers and sellers of homes are clients.
They definitely deserve our cooperation in working together to give them an outstanding community in which to live, work and grow.