It’s not uncommon to find higher value homes and neighborhoods attached to A+ rated public schools and education systems. These schools usually have excellent ratings and test scores. In a previous post, I discussed the steady increase in home values in the Lafayette CA Real Estate Market. The connection between home values and school ratings is directly correlated.
When shopping for a home in the Lafayette CA real estate market or anywhere else, homebuyers with school-aged children are very concerned about the quality of schools in their area. Northern California has a higher number of top rated public high schools than any other geographical area in the United States. Niche.com has a ranking of the Top 50 High Schools in the United States that excel in academics. Of the list of 50 schools, twelve are located in cities scattered across Northern California.
Values of Homes for Sale in Lafayette CA and School Ratings
The schools that made the list of the top 50 academically ranked schools in the country were judged on criteria including college preparatory curriculum and test scores. Lynbrook High School in San Jose was the highest ranked Northern California school at number seven. The home prices in this school area experienced an annual increase of 26%. The rest of the list can be viewed here.
While not on the list of the top 50 ranked by Niche.com this year, the schools in the Lafayette CA Real Estate Market are ranked in the top 60 of API schools in California. In fact, the school rankings will vary year-to-year by the various entities that consider school performance. Just a few years ago, the Acalanes High School District was ranked #1 in California, based upon STAR test results. The Acalanes Union School District boasts exceptional educational opportunities for students. The district is considered one of the highest performing school systems in the state. Acalanes, Campolindo, Las Lomas, and Miramonte High Schools are in the top 4% of all schools in the United States for their performance in Advance Placement (AP) Programming.
According to the Niche study, Acalanes High School was ranked higher than Lowell High School in San Francisco, an all-academic college-prep high school that has historically ranked among the elite public high schools in the nation. Median home values in the Lafayette CA real estate market have experienced double-digit valuation gains over the last few years, following our rapid recovery from the recession and the strong demand for Lafayette homes for sale that are within our highly regarded school district.
Correlation between Housing and School Values
A study was completed in another large major metro area, and the same relationship between home values and school rankings was exhibited. The study found that homes near 5-star or A+ rated schools were insulated from declining housing values. Poorly scored schools had houses that experience tremendous losses in value. The compiler of the data also suggests that buyers were willing to pay more for homes in schools systems with ratings above the average. This was absolutely the case during the recession where we saw relatively modest declines in home values compared to other parts of the bay area with lower performing schools.
The realization is that living in these excellent school system isn’t inexpensive anywhere in the country, but the good news is that these homes show a steady increases in value over time — outperforming areas with lower rated schools. In in the housing markets for eleven of the twelve schools in Northern California ranked in Niche’s top 50, the median home prices were over one million dollars and moving up steadily. An investment in a child’s education will pay dividends in both a quality education and growth in home values. The connection between home values and school ratings is not an anomaly. Potential home buyers shopping in the Lafayette CA real estate market can rest assured that homes here are a sound investment for your financial future and the future education of your children.