Last week Redfin Blog, a national real estate market news and analysis site, released a report comparing home prices to the test scores of elementary schools across the country. You can check out Redfin’s report here: Affording a House in a Highly Ranked School Zone? It’s Elementary
Home sales price data came from MLS’s across the country. School rating data came GreatSchools.org and is based on each school’s state standardized test results compared to those of other schools in the state.
The Redfin report found that housing prices in the zones of highly rated public schools are remarkably higher than those served by lower rated schools. From the report:
While we expected to see higher prices for homes in highly-rated school zones, we didn’t expect the difference to be so large. In certain markets, the difference amounted to hundreds of thousands of dollars for similar homes in the same neighborhood.
The Redfin report was conducted at a national level. In order to see the differences that exist in our local market I ran a similar comparison on home prices to school ratings in Reno. As did the Redfin report, I looked at GreatSchools.org ratings for public elementary schools.
The GreatSchools website showed 42 public elementary schools in Reno, Nev. Of these the site provided ratings for 38 schools. These were the 38 elementary schools I tracked. The ratings provided by GreatSchools ranged from a low of 2 to a high of 10.
The Redfin report looked at home that sold between May 1 and July 31, 2013 to calculate median sale price and price per square foot of homes within each school zone. I used the same time frame for this analysis.
The table and charts below show the numbers for Reno’s public elementary schools. The trends are like those found by the Redfin report — perhaps with even starker differences.
|GreatSchools rating||Median Sales Price||Median Sold PPSF|
What is most striking is the premium paid for homes zoned for schools with the highest rating of 10. These median sales price for these homes is nearly 80 percent higher than the median price for homes zoned for schools rated 9; and 139 percent higher than homes zoned for schools rated 8.