Be True to Your School’s ROI

St. Louis Park’s Peter Hobart Elementary

It’s common knowledge that the quality of public schools affects the value of residential real estate. How often at a dinner party, when chatting about buying a home in a particular neighborhood, will someone glibly say (in a Minnesota accent), “Oh yah, good schools. Good schools dere.”

A National Association of REALTORS study found that 25% of homebuyers listed school quality as a deciding factor in their purchases. In another NAR study, 53% of families with children under age 18 consider school districts to be important in their buying decisions.

But how much does school funding actually affect the value of your home? Turns out, a lot!

An often quoted study by the National Bureau of Economic Research found that a one-dollar increase in per-pupil state aid increases aggregate per-pupil housing values by about $20. It’s a compelling argument for increased state and local school district investment, regardless of whether you have children. Investing in your school district actually increases the value of your home!

So, next time a school levy appears on your ballot, consider you may actually be investing in your own property, perhaps with a return of investment of 20 to 1! That’s pretty hard to beat!

And while we’re talking about schools, here’s the latest 2021-22 school calendars for the neighborhoods where I focus my business: St. Louis Park, Edina, Hopkins, and Robbinsdale. (Golden Valley is served primarily by the Hopkins and Robbinsdale School Districts)