Homes near top-rated schools cost nearly 80% more but bargains still possible

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 found a home within walking distance of a top-rated elementary school. They went on to have two more children.

“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.

A new Realtor.com® report shows that over the past year, homes near public elementary schools with GreatSchools ratings of 9 or 10 cost an average of 78.6% more than typical homes in surrounding counties.

“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.

Despite this 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 these purchases are worth every penny.

“My youngest has special needs,” says Christy Walkers, who lives near Phoenix where she works as a real estate broker at Re/Max Signature. “Without the accommodations in her current school, she would likely need to be homeschooled... Being 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 also attractive to buyers without children due to potential resale values.

“Houses in quality school districts tend to maintain worth even during downturns compared to homes in less attractive areas,” says real estate investor Johnny Austin from Tacoma, WA.

In pricey Western markets, finding budget-friendly properties near high-quality schools is particularly challenging. Homes near top schools cost 87.4% more than typical homes in surrounding counties. In Los Angeles, median list prices around top-rated schools were 139.8% higher than surrounding counties.

Bargain hunters prioritizing education can still find deals if they look carefully. For example, homes around Oak Hills Elementary School in Los Angeles County were listed at $961,669 over the past year—12.1%, or $131,766 less than properties in surrounding counties.

Midwest markets charge nearly double for top schools due to growing popularity. Homes near high-quality schools cost an average of 93.2% more than those in surrounding counties. In Columbus, OH—the most popular market people are moving to—the median list price around top-rated schools was 43.4% higher than nearby counties outside the school zone.

Bargain seekers should consider Central Elementary School in Hocking County where homes had an average median list price of $239,310—46.4%, or $207,521 lower than typical homes in surrounding counties.

In the South, houses near high-quality schools cost an average of 76.7% more compared with those in surrounding counties.

“I advise parents to purchase in the best school district they can afford,” says Bruce Ailion from Re/Max Town & Country in Atlanta.

Affordable options exist around Chiles Elementary School and Clark Elementary School from Hillsborough County or Cypress Woods Elementary School from Pinellas County where purchasing could save between $59,825 and $114,384 compared with typical homes nearby.

In the Northeast, typical homes near top schools are 56% pricier compared with those elsewhere but buyers could save significantly by shopping smartly within Manhattan or considering moves outside New York City such as Hudson Valley according to John Olivero from Keller Williams First in Goshen NY.

Four toughest markets—San Jose CA Minneapolis Orlando FL Philadelphia—pose significant challenges as none had below-median home prices among their top-rated schools analyzed requiring potential compromises on popular features like fireplaces garages swimming pools basements central air conditioning according Xu

Buyers aiming affordability may need compromise such features considering smaller older houses built around late '80s early '90s typically found nearer desired educational institutions advises experts like Myers focusing on location rather square footage amenities often leading both thriving families rising property values long-term investments