They say with a good education no career goal is unattainable; no dream job out of reach.
And apparently, education can also open another door to prosperity.
A leading provider of housing data says homes in zip codes with at least one good elementary school have higher values and stronger home price appreciation over the long haul of ownership than neighborhoods that lack good schools.
In fact, good schools can lead to an extra $51,000 in your home’s value, ATTOM Data Solution, a parent company of RealtyTrac, found.
The report used data from home values from this year and price appreciation along with 2015 average test scores from nearly 19,000 elementary schools across the country. Homeowners in zip codes with at least one good school enjoyed an average of $74,716 in value added since they purchased their homes. That’s an average return on investment of 32 percent, according to report. Homeowners on the opposite side of the equation saw a gain of just $23,311, on average, since the housing recovery.
So, on average, the gap between those who live within the influence of a good school and those who did not was around $51,000.
The evidence of good schools providing a solid foundation for real estate investment goes even further: Over the last decade, volatility in price appreciation was more apparent in zip codes where good schools were not part of the community.
Here’s some other data to consider from the report:
- Year-to-date 2016 median home prices in zip codes without any good schools on average are still 1 percent below median home prices during the same time period in 2006.
- Median home prices in zip codes with at least one good school are up 4.5 percent on average compared to 10 years ago.
- 10-year home price appreciation in zip codes with good schools outpaced 10-year HPA in zip codes without good schools in 128 of the 173 metro areas analyzed.
- Home prices in zip codes without good schools dropped more precipitously during the housing downturn.
- Between 2006 and 2011, median home prices in zip codes without any good schools decreased an average of 28.9 percent.
- In that same period, median home prices in zip codes with at least one good school decreased 23 percent.
- Out of 1,661 zip codes with at least one good school, the average estimated home value as of July 2016 was $427,402, 77 percent higher than the average home value of $241,096 in 2,774 zip codes without any good schools.
So the next time you hear “location, location, location,” you may be left asking for the location of the nearest good school, and rightfully so.
Wondering where your neighborhood measures up? Get educated by going here and typing in your zip code. Good schools, by the way, are those with an overall test score of at least one-third above the state average, for the purposes of the study.
It’s not uncommon for prospective homeowners to buy into an area known for having good schools because we care about our children’s education. Now, picking a home in a neighborhood with a good school may also be good for your own pocketbook.