The old adage for real estate was “location, location, location.”
However, I have said for umpteen years, “Location, Location, School District.”
My logical conclusion umpteen years ago was the pure common sense notion that families with or without children would always try to gravitate towards a community, that had a great location, superior transportation and access to highways to their workplace and major city, in our case, “The Big Apple,” safe environment with low crime, things to do, parks, lower taxes and superior schools!
This will also depend on the location and the return for what you might derive for your purchasing dollars long term.
Although real estate taxes, of which your schools portion, comprises over 60 percent of the total have been getting out of hand in most communities on Long Island.
However, most school budgets pass in those towns which have above average curriculums.
Because of this, I surmise that is the major reason they have consistently contributed and provided a better return for real estate, than any other investment over the long run in those towns that have a superior education system. Relatively speaking, I believe if you were to go around the country, this would be true the majority of the time; with exceptions in those areas around the U.S. that are more transitional or vacation/second home environments, (down south and out west) where prices are more supply and demand oriented and not as affected and dependent on schools.
Adding to my conclusions was the article from Friday June 5 in the Great Neck News, that ranked a number of our elementary schools, by Nich.com, in the top 100 (in the top 99 percent echelon) in the nation as well as in New York State.
Surveys can be taken every year making these comparisons, but the end results speak for themselves.
We surely produce some of the smartest and most successful individuals in the nation.
However, the higher the scores in math, english and science become a contributing factor, and will add to the value of local real estate in those towns, where families are willing to pay the higher prices.
So, looking at home prices over the long run through the various cycles, when they go down in those towns that are more resilient, due to their high education standards, tend to come back faster and increase at a better pace, than those areas that may not score as high.
This is not to say, that smart children do not come out of lower scoring areas, but those are exceptions and have less of an effect on increasing home prices.
I am fairly sure that if you look at the average income of those individuals coming from towns with superior education curriculums, that they are above average compared with those towns that are not as competitive scholastically.
There are many studies and articles that have shown that there is a direct correlation between amount spent per student in higher income and home priced areas compared with those in lower performing and lower valued towns. A contributing factor is the amount of money provided by the state and federal government to those areas.
I could write an entire dissertation on the many problems with this inequity and many other factors contributing to the differences in education and go on a rant, but I need to stick to the point of the value of education contributing to the value of real estate.
If you want the value of your home and property values of real estate in your community to increase over the long haul, then you must first and foremost, focus on your education curriculum (again mental and physical) and try to figure out how to improve it and to raise the overall test scores. I am quite sure and would almost like to guarantee, will make your real estate more valuable down the road. So, we are graduating many, many smart people.
But, we also need to create better higher paying jobs to slow down the “Brain Drain” and those higher achievers from leaving New York because of the cost of housing and taxes.
The following links are to two articles you might want to read that will provide some ideas on the whys and contributing factors to the disparaging differences in our education: