California Housing in Good School Districts Cost Nearly 50 Percent More: Study

Good news for homeowners in good school districts, but not so good news for people wanting to move there. A study released this week by Realtor.com shows that on average, homes in good districts are nearly 50 percent more expensive.

The study looked at homes in school districts rated nine or 10 on a 10-point scale at GreatSchools.org compared to homes in districts rated six or less. The analysis shows homes within the boundaries of the higher rated public school districts are, on average, 49 percent more expensive — at $400,000 — than the national median of $269,000.

"It's common knowledge that buyers are often willing to pay a premium for a home in a strong school district," Realtor.com research manager Javier Vivas said. "Our analysis quantifies just how good it is to be a seller in these areas."

In California, the numbers are even more pronounced. In Los Angeles County, prices for homes in Beverly Hills, whose school district ranked nine, are 689 percent higher than the county median. Even accounting for wealthy areas, the good-school-district-home-price premium in L.A. County is still higher than the national average. In relatively middle-class Culver City, which ranked eight, home prices are still 110 percent higher than the county median.

The numbers are also the same in the Northern California. Homes in three school districts — Los Altos Elementary, Mountain View-Los Altos Union and Saratoga Union Elementary school districts — in Santa Clara County are nearly 300 percent more expensive than the county median.

Homes in good school districts don't just cost more, on average, they also sell faster too, according to the study. Houses located in these areas sell eight days faster than homes in below average school districts, four days faster — at 58 days — than the national average.

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