It is well known that the quality of local schools often drives the value of nearby homes. This was especially noticeable after the 2008 meltdown when we watched the areas with poor schools depreciate faster than the areas with good schools.
The other interesting point in the article was how so many families leave the more expensive “good school neighborhoods” after the kids graduate. This data is not hard to get nowadays, and it is a great way to spot potential listings.
There is one more point that is not in the article but about which we have blogged several times: It is often much cheaper for parents to buy in an expensive “good school neighborhood” than it is for them to stay in a “bad school neighborhood” and pay to send their kids to private schools.
We had a borrower in Concord, CA with three kids in private schools. He moved to Lafayette, CA and more than doubled the size of his mortgage, but his monthly expenses went way down b/c he moved his kids to the excellent public schools.
His money is now going into appreciating real estate instead of the sunk cost of tuition.
Jay Voorhees
Founder/Broker | JVM Lending
(855) 855-4491 | DRE# 01524255, NMLS# 310167
