The rating of a public school is more than a source of community pride. School districts that perform well also have a net-positive effect on home values.
When it comes to the really hot Northeast LA neighborhoods, the are many reasons buyers are choosing homes in Eagle Rock and Highland Park and why investors are investing heavily in Mt. Washington and Glassell Park real estate. One important reason is the close proximity of these neighborhoods to excellent schools.
It’s not a new idea that homebuyers pay attention to the quality of schools when looking for a new place to live. But being in a good school district isn’t just of interest to families with school-age children. Quality public education has a positive effect on home values, regardless of who lives in and owns those homes.
People looking to buy a home in Northeast Los Angeles (NELA) very often check out the ratings of schools, both public and private. It might make the difference between choosing a home in Eagle Rock, Mt. Washington, Glassell Park or Hermon compared to another town and district just a few miles away.
There are several considerations for the homebuyer, children or no children, to consider:
Schools that perform are good for your own children – While it’s pretty obvious it shouldn’t be overstated. At such a critical time in a person’s development, who would want their own children or the children of their neighbors to be inadequately educated?
Quality public schools save you from paying private school tuition – Very often – but not always – a better school district will also have higher property taxes. Offsetting that is how parents can feel confident about their children being in public schools. An alternative is when the public schools are mediocre but robust parochial or private institutions in the area pick up the slack.
Good schools increase home values – A story in the Washington Post in 2014 reported on a study by the real estate company Redfin. The firm found that homes in top-ranked school districts on average cost about $50 more per square foot than those in average-ranked districts. The study pointed out an extreme example, where comparable homes in adjacent school districts near Alexandria, Virginia (Washington DC metro area) had a price differential of $130,000 ($790,000 vs. $920,000 for 4-bed, 3-bath houses) with the difference attributed solely to school quality.
Academic excellence is also excellent in a recession – Jobs, financial markets and other things will affect an economy. But the quality of school districts are less affected by economic factors in the short run, therefore during a recession the quality of a school district will soften the effects of a broader downturn on real estate values.
The bottom line is that the axiomatic “location location location” factors in home pricing include which school district a home falls into. Speak with Realtor Tracy King about the quality of schools and homes in places like Garvanza, Highland Park and elsewhere in NELA.
With over 30 years experience in helping clients buy and sell homes in Northeast Los Angeles, Tracy King has a depth of real estate knowledge that makes her the go-to for both the first-time home buyer and the seasoned real estate investor. When she's not holding open houses or negotiating offers, Tracy enjoys wine tasting, cooking, or planning her next trip to Paris. If you are looking to buy or sell a home in Northeast Los Angeles, contact the Tracy King Team at 323.243.1234 or firstname.lastname@example.org.