How School Districts Can Impact Home Value
Don't have kids in the school district?
Budget votes can affect the quality of a school district and lead to a change in the value of your home.
There are 125 school districts across Long Island.
A high quality education is important for our childrens' future. However, good schools, are important for more reasons than just the obvious. Property values increase as more people desire to live within a particular school district. Families with children are willing to pay more to live in a community where the schools have a good reputation. Even home buyers who plan on using private schools or those without children benefit from communities with strong schools. As long as a community maintains high-quality public schools, their property values will be more likely to rise.
A 2018 study by the National Association of Realtors (NAR) found 26 percent of home buyers considered the quality of schools when looking for a new home. Schools aren’t the only determinant of home prices—safety, commute times, jobs, and housing inventory all play a part in any market. But a good home in a good school district can fetch a higher price, and also hold a better resale value than a similar home in a less-stellar district.
“Economists have estimated that within suburban neighborhoods, a 5 percent improvement in test scores can raise prices by 2.5 percent,” reports the New York Times.
For access to a top-tier school district, buyers in many markets are willing to forgo an additional bedroom and vaulted ceilings. Other parents consider higher home values an investment in their children, weighing the cost of private school versus the cost of a larger or newer home.
Great schools make for an easier sell.
And it’s not just about the buying. For homeowners hoping to sell their current home before they upgrade, we’ve got good news. Homes in top-ranking districts often sell faster than homes in less desirable districts — eight days faster, according to Realtor.com. Realtor.com also found that those homes received 26 percent more views than the average listing, and 42 percent more than homes in lower-ranked school districts.
Understanding Bonds vs Budgets
Budgets: In its most simple definition, a school budget describes a district's plan for the upcoming year as related to anticipated revenues and expenditures. ... A school budget helps bridge the gap that can exist between a district's stated goals and resource allocation.
Bonds: A school bond election is a bond issue used by a public school district, typically to finance a building project or other capital project. These measures are placed on the ballot by district school boards to be approved or defeated by the voting public.
Both ensure the achievement of the school's objectives and the plans that required the spending of money is taken care of.
**Visit your local School District's website to learn more about the next budget and/or bond vote.