As a Real Estate professional I get this question all the time. How Much Do Schools Affect Real Estate Prices- Not only historically but also with the current buyer trends, the first question amongst the buyers is how is the school district performing. Well performing school districts usually draw the attention of families with school age children. Even within the school district people nowadays are wanting to buy in an area with a 9 or 10 rated school!!
The trend these days has shifted to a big extreme- previously people would also determine commute times amongst other requirements like home features. It seems that many of those things are being relegated to a secondary category and schools have become the most important criteria. In the Bay area, the job market is hugely fueled by the tech sector. A workforce that has a high level of education, demands for high performing schools increases. Since the attendance to these schools is determined by the boundaries set by the school districts, it becomes imperative for home buyers to choose homes within these boundaries.
According to a survey done by Realtor.com, nearly 91% of the 1000 prospective home buyers interviewed expressed that school boundaries were important for their search criteria. Home buyers are also willing to pay a premium on the houses in these districts and boundaries. Research shows that homes in the better school districts sell for a higher price as opposed to similar houses in under performing districts. Affluent home buyers choose to purchase homes in sought after school districts, which also drives up the values of homes in these districts. Many times it seems that affluent and educated buyers also raise the scoring of a district by focusing heavily on their children’s education!
I have noticed many times a lot of home buyers are making big sacrifices to live in these areas. Increased commutes, giving up some home features to keep affordability in check. There is also a current trend for foreign buyers to purchase a home in a well performing school district, so they can have their children attend those schools. A price index comparison of under performing and well performing school districts clearly indicates the winner. It is a proven fact that Higher price appreciations and stability in the communities are a result of the school districts.
Here are some links to the school districts:
San Ramon Valley Unified School district-The San Ramon Valley Unified School District serves the communities of Alamo, Blackhawk, Danville, Diablo, and San Ramon including Dougherty Valley, a portion of Walnut Creek and Pleasanton. Districts are comprised of 35 schools serving more than 32,000 students.