Homebuyers

The Education Premium: How Local Schools Can Impact Home Values

As back-to-school season begins, local schools aren’t just a hot topic for parents. It’s something homebuyers are watching closely, too.

Homes in areas with top-rated public schools often attract more buyers and may be able to command higher prices. 

While school ratings aren’t the only factor that can drive a home’s value, they can offer insight into a neighborhood’s long-term stability and appeal. Even if you don’t have kids, paying attention to the local school system can be a smart move. Strong districts can boost resale potential and help protect your investment down the road.

“Buying in a good school district means more than just having a home; it’s about building a solid foundation for long-term value and peace of mind,” said Doug Van Soest, a licensed residential appraiser and owner of SoCal Home Buyers based in Santa Monica, Calif.

Here’s what to know about why school districts matter, what to look for, and how to do your homework before buying.

Why homes near top schools often have higher values

Homes in top-rated school districts tend to attract more buyers—and it’s not just families with kids. That demand often drives up prices and helps prop up property values.

“Whether you’re a parent or not, you’re buying into an ecosystem in which value is partly anchored by the education system,” said Jacob Naig, a real estate agent and investor in Des Moines, Iowa. “It acts as an inherent hedge to market volatility.”

Even if you don’t have school-age children, buying in a well-regarded area may make your home easier to sell down the road.

Just be aware that homes in top school districts may have higher property taxes than similar homes in other districts.

How to find out about the local school system

The best way to learn about the local school system is to start with the basics: test scores, graduation rates, and official school ratings.

“I always advise buyers to start by exploring online resources like GreatSchools.org, which offers ratings, reviews, and feedback about local schools,” said Karen Watts, the founder and CEO of DomiSource, based in Virginia Beach, Va. The company helps people move.

You may want to ask your real estate agent about the schools in a particular area. However, due to fair housing laws and not wanting to steer clients into communities, they may not be able to tell you about the local schools. That just means you will have to do your own research.

Naig added that it is helpful to dig deeper than just the top-line numbers.

“You’re not just going to use the score,” he said. “Has the district been transformed? Is there some new facility?”

The goal isn’t just to find a school with good ratings. It’s to understand how the district is changing and where it’s headed.

Signs of ongoing investment and improvement can tell you a lot about the school’s future—and your home’s potential value.

How to learn more about local schools beyond going online

Online research is a great starting point. But it doesn’t tell the whole story.

To really understand what a school is like, it helps to go beyond the websites and connect with people who know the area firsthand.

“I recommend that buyers visit the schools during regular hours,” she said. “They can see what the environment is like, how staff engages with students, the activity level of the school, and if the property looks well maintained.”

Naig added that personal conversations can often tell you more than a website. You may also want to connect with local parents to get their feedback.

“Talk to the neighbors,” he said. “At showings, I’ll have conversations with people walking their dogs or mowing their lawns. Ask what they think about the local schools. You’ll often get some of the realest feedback around to which no rating site can compare.”

What to consider beyond test scores

When it comes to evaluating a school district, there’s more to consider than just test scores.

Other factors, like class sizes, student support, after-school programs, and parent involvement, can give you a better picture of the overall school experience.

Naig suggests focusing on signs of long-term investment.

“I’d consider the student-to-teacher ratio, after-school programs, investment in facilities, and involvement in the community,” he said. “It’s basically due diligence around one of the most significant ‘value anchors’ in your neighborhood.”

Why it pays to do your homework on local schools

Whether you’re planning to stay for years or sell in the future, taking the time to research local schools can pay off.

Naig recalled helping a homebuyer purchase a small, unremarkable home in a top-rated school zone. While the home wasn’t anything special, the school district was in the top 5% statewide.

After a few years as an in-demand rental property, the owners decided to sell the home. They received multiple offers in 48 hours, over the asking price.

“For buyers who want to future-proof the value of their home, [a top-rated school] district can be the most important feature you don’t see on the listing sheet,” said Naig.