Midwest markets have been heralded lately for their affordability—but homebuyers hoping to settle in a top school district here will pay nearly double the price.
A typical home near high-quality schools in the Midwest will cost an average of 93.2% more than in surrounding counties. This high premium stems in part from the area’s growing popularity.
“Increased competition for homes near top-rated schools [in the Midwest] may drive prices even higher, raising new affordability concerns,” says Xu.
For example, in Columbus, OH—which Realtor.com named the most popular market people are moving to in 2024—the median list price around top-rated schools was 43.4% higher than in nearby counties outside the school zone.
Bargain alert: Home shoppers searching for a bargain in this area should consider house hunting around Central Elementary School in Hocking County. Homes near this highly rated school had a median list price of $239,310 over the past year on average—a whopping 46.4%, or $207,521, lower than the price of a typical home in the surrounding county.
In the South, a typical house near high-quality schools cost an average of 76.7% more compared with a home in surrounding counties.
“I advise parents to purchase in the best school district they can afford,” says Bruce Ailion, a real estate agent and attorney with Re/Max Town & Country in Atlanta. “The parents with an appreciation for education understand the value that top schools deliver to their children.”
Bargain alert: Shoppers who are looking for affordable homes near top-rated schools in Tampa, FL, should consider homes around Chiles Elementary School and Clark Elementary School from Hillsborough County, or Cypress Woods Elementary School from Pinellas County. Purchasing a typical home by these schools can save a buyer between $59,825 and $114,384, or 12.8% to 25.7%, compared with buying a typical home in the surrounding counties.
A typical home near top schools in the Northeast is 56.0% pricier compared with real estate in the surrounding county. Meanwhile, in one of the area’s most expensive metropolitan markets—New York City—the median list prices near highly rated schools is 54.6% higher than in surrounding counties.
“My clients are willing in particular to focus on properties near top public schools, given the average cost of private schools in my area,” says Nikki Beauchamp, associate broker at Sotheby’s International Realty in Manhattan. “If you had two kids in New York City private schools, you could easily be well into six figures with tuition.”
Bargain alert: Buyers looking for access to both top-rated schools and affordable homes in Manhattan could have better odds when shopping for homes near River School, Peck Slip School, PS 183 Robert L Stevenson, PS 163 Alfred E Smith, and PS 527 East Side School-Social Action. Buying a typical home near these schools in Manhattan “can save a homebuyer between $79,443 and $736,734, or 4.8% to 44.8%, compared to buying a typical home in the local county,” says Xu.
Moving out of Manhattan to places like the Hudson Valley just 60 miles outside of New York City could save even more, according to John Olivero with the Olivero Team at Keller Williams First in Goshen, NY.
“Due to our close proximity to a major city with a high population and high housing costs, folks have found our county an excellent place to relocate,” Olivero explains. “I also find owners tend to stay in their homes longer in these good school districts.”
In certain areas, home shoppers will struggle to find any affordable options near top schools.
In San Jose, CA, Minneapolis, Orlando, FL, and Philadelphia, none of the top-rated schools with sufficient listings for analysis had a below-median home price.
“Therefore, homebuyers may need to compromise on some popular home features to get a wider selection of affordable top-school homes,” explains Xu.
Homebuyers who want an affordable property near a top school district will need to compromise on the house they get.
One common sacrifice that homebuyers make to squeeze into a good school district is to pick a home that lacks popular features they might have liked to have otherwise. According to this report’s research, the top five features that home shoppers may need to give up to find budget-friendly, top-school homes are a fireplace, garage, swimming pool, basement, and central air conditioning.
“Home seekers aiming for affordability near top-rated schools regularly must compromise on these traditional indulgences,” says Austin.
Considering a smaller or older home can also help buyers score a budget-friendly abode near a top-tier school: A typical home that’s more affordable and has access to top-rated schools was built in 1988 and has 1,642 square feet, on average—while one in a surrounding county was built in 1990 and has 2,044 square feet.
“If a good school is high on the priority list, I will express to my clients to not get too hung up on square footage or the year the house [was] built,” explains Myers. “Focus on location.”
Two of his past clients were torn between a modern, spacious home in an average school district and a smaller, older home in the best school district in town.
“They took the plunge on the smaller home,” says Myers. “Now, not only are their kids thriving, but their home’s value has skyrocketed, too.”
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