Homes Near Top-Rated Schools Cost Nearly 80% More—but Homebuyers Can Still Find Bargains by Giving Up One Thing
When real estate agent and investor Ron Myers was looking for a home for his family in Wellington, FL, “the school district was non-negotiable for me and my wife,” he recalls.
Their son was 11 at the time, and they had plans to have more children.
“We were not just buying for ourselves; we were buying for our kids’ future,” says Myers. “A top school district meant a better education for them and a stronger investment for us. Why pour tens of thousands per year into private school tuition when you can invest it into your home and let that equity grow?”
Myers and his wife were lucky enough to find a home within walking distance of a top-rated elementary school. They went on to have two more kids.
“Buying our home is a decision we have never regretted because the value of being in the right district goes beyond just dollars and cents,” he says. “It’s about ensuring what’s best for your family and having peace of mind.”
However, that peace of mind comes with a hefty price tag.
How much more do homes cost near top-rated schools?
While most homebuyers know that properties in quality school districts tend to be more expensive, a new Realtor.com® report proves just how much parents pay for that privilege.
Over the past year, a typical home near a public elementary school with a GreatSchools rating of 9 or 10 has been calculated to cost an average of 78.6% more than a typical home in the surrounding county.
“Because a home’s location in many parts of the U.S. determines the school its residents attend, a home located in a top-notch school district tends to command a premium for that amenity,” says Realtor.com economist Jiayi Xu in her analysis.
Yet despite this daunting fee, parents are rarely deterred.
“A good school district is the Holy Grail for my clients,” says Myers. “My buyers know the value, and they’re ready to pay more because they understand that homes in these areas are a gold mine.”
Parents agree that these pricey purchases are worth every penny.
“My youngest has special needs,” says Christy Walkers, who lives in a top school district near Phoenix, where she also works as a real estate broker at Re/Max Signature. “Without the accommodations in her current school, she would likely need to be homeschooled, which would greatly impact our ability to provide quality education, community, and socialization. Being a part of a school district that provides that higher level of care has become a lifeline to us as parents.”
A good school district is even attractive to buyers who don’t have kids, because they know that buying in one will be great for resale values.
“Houses in quality school districts tend to maintain worth to a greater degree even during downturns compared to homes in less attractive areas,” says real estate investor Johnny Austin in Tacoma, WA.
How school districts affect affordability in the West
For those living in pricey Western markets, finding budget-friendly properties in high-quality school districts is particularly challenging. Homes near top schools in this region cost 87.4% more than a typical home in the surrounding county.
In Los Angeles, one of the most expensive housing markets in the U.S., median list prices around top-rated schools were an astounding 139.8% higher than surrounding counties.
Bargain alert: Homebuyers who prioritize education can still find bargains in the L.A. area if they look carefully.
According to Realtor.com data, homes around the top-ratedOak Hills Elementary School in Los Angeles County were listed for $961,669 over the past 12 months—which is 12.1%, or $131,766, less than the going rate for properties in the surrounding county.
Why Midwest markets charge nearly double for top schools
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.
How much Southern homebuyers pay for top schoolsIn 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.
Why Northeast homebuyers struggle to afford good schools
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.”
Four toughest markets for homebuyers seeking top schools
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.
What to give up to get into a top school district
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.”