The Value of Higher Education...

By now, you’ve most likely heard that “Location! Location! Location!” is the most important factor in real estate. The determination of this ideal “location”, from an investor’s point-of-view; is that place where property value is maximized. In this case, we are concerned about maximizing the value of a residential property (single-family residence). This ideal location could be determined by a number of factors, such as:
1. Proximity to food and entertainment;
2. Proximity to places of higher education and libraries;
3. Proximity to sources of noise;
4. Access to roads and number of road access points within a neighborhood (i.e., short-cuts);
a) Conversely, points where traffic is limited may also be associated with adding value.
5. Proximity to recreational areas (parks, lakes, biking and walking trails, etc.);
6. Neighborhood characteristics contribute to the value of the property. Characteristics such as:
a) Width and extent of paved sidewalks;
b) Number of old-growth trees within the neighborhood;
c) Nearby man-made or natural streams/canals;
7. Building characteristics also contribute to the value. Characteristics such as:
a) Wrap-around porches;
b) Single or multi-pitched roofs;
c) Number of bedrooms and bathrooms;
d) Basements;
e) Pools;

And the list goes on…

This paper will discuss how the value of a home is affected by the proximity to a place of higher education (elementary, middle, high, college, or university). Which is most desirable, living by a school (walking distance), living near a school (long walk, short bike, or short drive), or living away from a school (drive only or take the bus)? The quality of the school system will also be taken into consideration. Even if the prospective homebuyers do not have children, it would be prudent for them to research the closest schools before purchasing a home. Good public schools are always in demand and in turn affect real estate values. Communities with high scoring school districts appreciate more, or in this market, depreciate less than communities with low scoring school districts. For many prospective home buyers with children (or those who are planning to have children), the quality and reputation of the local school system may be as critical to their buying decision as the appeal and location of the home itself. The quality and reputation of the school will affect the home's value, not only when bought, but also when sold.