U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > U.S. Forums > Texas > Dallas
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 05-15-2015, 01:02 PM
 
5,365 posts, read 3,491,772 times
Reputation: 6845

Advertisements

This assumption seems to be one that many people make, but I was wondering if anyone has data on this topic? Obviously, homes in good school districts are more expensive than homes in bad ones (generally), but is there evidence to indicate that they appreciate at a faster rate?

Note also that I'm not referring to improved appreciation due to the improvement of a school district.
Rate this post positively Reply With Quote Quick reply to this message

 
Old 05-15-2015, 01:15 PM
 
4,973 posts, read 5,681,960 times
Reputation: 5834
I'd say no. Plano East is a good school district, there are some really cheap homes there. Many areas of Dallas have worse school districts but homes cost much more (Oak Cliff, Lower Greenville areas for example). Central Plano is another good area (Plano Senior), but you can see (minus the past few years) that many homes in that area have depreciated, not appreciated. Richardson has good schools. Homes aren't that expensive across the whole city.

Since schools are funded at an ISD (cityish-wide level) there is probably some profit-sharing across the good districts that accounts for school quality (makes schools in poorer areas of a generally wealthy community better) and the same mechanism doesn't allow upcoming districts to improve at the same rate as the neighborhood.

Home price is determined by area investment, amenities, and other external factors first, and by school quality much less. Also remember that many homes are purchased by people with no kids of school age, and therefore they are not directly interested in school quality.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 05-15-2015, 01:21 PM
 
Location: Nashville, TN
1,951 posts, read 1,533,606 times
Reputation: 1575
Great question, I'm interested in hearing more about this too. We're thinking about moving to Plano in the next year or so, but the home prices there seem to be gaining very fast (10% year over year??).

We can cut our housing bill in half by moving there, but if we wait two years, that may not be the case.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 05-15-2015, 01:38 PM
 
Location: DFW - Coppell / Las Colinas
40,070 posts, read 45,745,048 times
Reputation: 52335
Homes in good school districts can normally bring a 10-25% premium.

A good example would be Coppell schools verses Lewisville schools right next door. But like always, there are exceptions especially in this crazy market.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 05-15-2015, 01:41 PM
 
5,365 posts, read 3,491,772 times
Reputation: 6845
Quote:
Originally Posted by Rakin View Post
Homes in good school districts can normally bring a 10-25% premium.

A good example would be Coppell schools verses Lewisville schools right next door. But like always, there are exceptions especially in this crazy market.
But do they appreciate faster? As I said, I know they are typically more expensive.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 05-15-2015, 01:46 PM
 
Location: Nashville, TN
1,951 posts, read 1,533,606 times
Reputation: 1575
Quote:
Originally Posted by Wittgenstein's Ghost View Post
But do they appreciate faster? As I said, I know they are typically more expensive.
Still think that's a great (and unanswered) question.

Of course, assuming a flat increase, the more expensive home will gain more value. 3% of $200k > 3% of $100k.

But is there a larger percentage gain for homes in good schools? I'd be interested in hearing the same answer...
Rate this post positively Reply With Quote Quick reply to this message
 
Old 05-15-2015, 01:57 PM
 
Location: Frisco, TX
458 posts, read 1,683,711 times
Reputation: 460
Quote:
Originally Posted by Wittgenstein's Ghost View Post
This assumption seems to be one that many people make, but I was wondering if anyone has data on this topic? Obviously, homes in good school districts are more expensive than homes in bad ones (generally), but is there evidence to indicate that they appreciate at a faster rate?

Note also that I'm not referring to improved appreciation due to the improvement of a school district.
I don't know if I feel like it is the case in my neighborhood. We just started recently seeing rapid appreciation on our homes over the past two years. Increase of 5-6% last year, but increase of 15% across the board in the neighborhood this year.

I have a feeling this will continue for us at least over the next two, three years given the high profile moves minutes away from us.

But we also zone to West Plano schools - and the homes in our neighborhood are significantly less than the average purchase price in our zipcode, which probably will help us appreciate a bit more quickly. On the flip side, for most people migrating from CA, I would assume they would want a larger home than what our neighborhood could offer them with their budgets.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 05-15-2015, 02:05 PM
 
Location: Dallas, TX
976 posts, read 881,939 times
Reputation: 1804
Quote:
Originally Posted by Wittgenstein's Ghost View Post
This assumption seems to be one that many people make, but I was wondering if anyone has data on this topic? Obviously, homes in good school districts are more expensive than homes in bad ones (generally), but is there evidence to indicate that they appreciate at a faster rate?

Note also that I'm not referring to improved appreciation due to the improvement of a school district.
The correct answer is: it depends.

From a historical baseline, the answer is obviously yes. You note in your post: "homes in good school districts are more expensive than in bad ones". Well, how did that happen? The answer is that the superior schools (or at least the perception of superior schools) drove greater price appreciation in those markets. Two identical homes built a couple of blocks from NW Hwy, one north in DISD and the other south in HPISD, would today have dramatically different valuations.

However, in areas that are already built out those premiums are pretty much built into the price already and there are other dynamics that can be difficult to isolate or control for when trying to evaluate the cause of variations in home appreciation. Using the North Dallas/HPISD comparison the price point that is involved for those areas is high enough that private school is a relatively minor financial burden for a potential home buyer.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 05-15-2015, 02:13 PM
 
5,365 posts, read 3,491,772 times
Reputation: 6845
Quote:
Originally Posted by NP78 View Post
The correct answer is: it depends.

From a historical baseline, the answer is obviously yes. You note in your post: "homes in good school districts are more expensive than in bad ones". Well, how did that happen? The answer is that the superior schools (or at least the perception of superior schools) drove greater price appreciation in those markets. Two identical homes built a couple of blocks from NW Hwy, one north in DISD and the other south in HPISD, would today have dramatically different valuations.
There are a lot of moving parts to this claim. For starters, it is very possible that some areas appreciated due to non-school factors, and that the subsequent price appreciation attracted a different demographic of residents, which improved the school ratings. It doesn't seem possible to assume that there was a baseline of sorts and that price appreciation differences are attributable to school district performance.

I am on the fence on this whole question, but one consideration that might make me a bit skeptical is that school district quality is already a presently-known factor. As such, that advantage should already be built into current prices. It seems to me that differences in appreciation should be traceable to changes in relative perceived value, but a good school district doesn't represent a change in most cases. Of course, there are some unusual cases where a quality district would have a direct impact on appreciation, such as if many neighboring districts significantly deteriorated, leaving fewer good districts than before. In such a case, the "change" would be that good districts were placed a a greater premium than before. However, assuming that there are no unusual dynamics such as that, it is hard for me to imagine why a fact that is already known in today's market isn't properly reflected in today's prices.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 05-15-2015, 02:14 PM
 
244 posts, read 375,288 times
Reputation: 205
To support the Overdog's opinion, we're prime examples of the Oak Cliff valuation. We've owned our house in DISD for three years. In that time, it's appreciated 38%. It seems to be more about the school within the district than the specific district.
Rate this post positively Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:


Settings
X
Data:
Loading data...
Based on 2000-2020 data
Loading data...

123
Hide US histogram

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > U.S. Forums > Texas > Dallas
View detailed profiles of:

All times are GMT -6.

© 2005-2023, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Contact Us - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37 - Top