How Much More Do Homes Cost Near Top-Rated Schools?

When it comes to homebuying, there’s one factor that consistently drives up prices: proximity to top-rated schools. While many homebuyers know that living near a great school district costs more, a recent Realtor.com® report reveals just how much more.

The Premium for Top Schools

According to the report, homes near public elementary schools with a GreatSchools rating of 9 or 10 cost an average of 78.6% more than typical homes in the surrounding area. This “school premium” underscores the value parents place on quality education. As Jiayi Xu, an economist at Realtor.com, notes, “A home in a top-notch school district tends to command a premium for that amenity.”

Despite the steep price tag, parents are rarely dissuaded. A good school district is often seen as an investment, not just in their children’s education, but in the property’s long-term value.

Why Homebuyers Pay More for Good Schools

For many parents, the benefits of a top school go beyond academics. A buyer whose youngest child has special needs explained that without the resources provided by a school, homeschooling would be the only option, significantly impacting the family’s life.  

Homes in great school districts also appeal to buyers without children. Houses in these areas tend to maintain value better, even if the market slows.

Regional Breakdown: The Impact of School Districts on Home Prices

The report shows that the premium for homes near top schools varies by region. Here’s a look at how much more homebuyers pay across the U.S.:

• Western U.S.: Homes near top schools cost an average of 87.4% more than the surrounding county. Los Angeles takes the cake, with homes priced 139.8% higher near top-rated schools. However, savvy buyers can still find bargains if they know where to look.
• Midwest: While generally more affordable, homes near the best schools in the Midwest come with a price tag nearly 93.2% higher than surrounding areas. In Columbus, OH, which is seeing a surge in popularity, homes near top schools are 43.4% more expensive.
• Southern U.S.: In the South, homes in top-rated school districts cost 76.7% more. Buyers looking to save can still find deals near top schools in places like Tampa, FL, where some homes are 12.8% to 25.7% cheaper compared to the broader county.
• Northeast: Homes near top schools are 56% pricier than in surrounding counties. In New York City, where private school tuition is sky-high, homes near top public schools cost 54.6% more, yet still offer a significant savings compared to private schooling costs.

Compromising on Features for a Better School

For many buyers, affordability comes with compromise. To get into a good school district, they may need to give up on features like fireplaces, garages, pools, and even central air conditioning. Smaller or older homes are more common in these areas, but the trade-off is often worth it. As a real broker I  advise my clients, Focus on location—square footage and modern amenities can be added.

A Smart Long-Term Investment

While the price premium may be daunting, homes in great school districts often turn out to be a smart investment, not just for families but for anyone looking to secure long-term property value.

What’s your take? Would you pay more for a home near a top-rated school? Let us know in the comments below!