One question that comes to mind to those involved in real estate, whether it is an investor or a family moving to a new city, it is whether or not the local schools will affect the market. Some believe that the market is hardly impacted by schools in the area, if at all, while others feel that schools have a huge impact on the local market. Luckily, there has been some research as to whether or not this is the case.
Quality Schools Can Affect the Market
Just about every study done has shown that schools that perform well in terms of standardized testing can affect the market in a positive way. Neighborhoods in these areas were nearly invulnerable to declining housing prices in recent years. Considering the market was unpredictable at best the past couple of years, this is an important find.
Research has also shown that schools that do not perform well can affect the prices around them. Over the same time periods as the quality schools, those neighborhoods had very poor years. This is good to know if a good deal is available in a neighborhood with a bad school system.
Private vs. Public
In a study by the Brookings Institute, researchers found that even though private schools are more expensive than public schools (even those in rich neighborhoods) home owners may end up spending more money going the public school route. This is because private schools tend to be in neighborhoods that are worth more, and their values go up.
Commercial Real Estate
Having quality schools can affect commercial real estate as well. Having a successful school can create hub in certain areas within a community. This is especially true for schools with large campuses, such as universities.
A large university can expand and need to find large commercial buildings. With the poor economy a few years ago, some universities are finding great deals to move specialty schools in downtown areas of large cities. This can stimulate some areas, and create cool nooks in busy areas of towns, such as a tech center or a business park.
All in all, schools can definitely change the real estate landscape in different cities. Having quality schools whether they are elementary schools or high schools can affect housing prices, and even prevent some communities from suffering from a bad market. Universities can not only add to a city’s culture, it can present commercial real estate professionals great opportunities as well.
Kamiel Moore is a writer for We Buy Ugly Houses St. Louis. There are many ways St. Louis schools impact the local real estate market.