If you’re planning on moving in the Chicago suburbs, or coming to Illinois from another state, you’re likely evaluating local school districts in the area and wondering how that may impact your property value…and your choice to move altogether. This consideration is important because the school district affects property valuation and overall satisfaction with new homes.
Do you want your kids to be able to walk or ride their bike to school? Would you rather live in a worse school district and pay less for your new home, or is the trade-off of paying more for a home in the best school district more your speed? By knowing how school quality affects property value, you will be in a better position to choose one that is right for your family, finances, and specific goals.
We all know that properties located closer to good schools significantly influence the decision of potential buyers or homebuilders. In fact, the 2023 NAR Home Buyers and Sellers Generational Trends revealed that 30% of buyers aging between 33-42 deemed “quality of the school district” the biggest factor when picking a given neighborhood. In general, houses within the top-performing districts are more likely to spend less time on the market, attract more viewers, and are sold at a higher price compared to homes in the lower performing districts. It also makes the evaluation of school districts an important factor in deciding where to purchase a home, especially for parents with children or teens.
The quality of the school district can drastically improve the standard of living for families with children. This can also affect other buyers who want to invest in houses for other reasons. Clearly there is a lot to consider! 23 Legal is here to explain the role school districts play in property values, how a home buyer can research and select the right neighborhood, and tips for finding a school district that will ensure your family’s long-term success.
Do School Districts Really Impact Property Value?
It can be said that school districts have a clearly defined effect on the value of property. People prefer areas with good schools since they form an essential part of growth, and hence buying a home in such areas boosts demand – and the property values. Several criteria explain how school districts influence property values:
Academic Performance
Homes in areas with high-ranking schools tend to have higher property values. The academic performance is determined by scores achieved by students on standard tests, dropout rates, and college benchmarks. Since parents are ready to pay more for properties in such areas to get their children qualified education institutions. As reported by The New York Times, analysts have found that test scores increase by 5% in suburban areas can cause the prices of homes to go up by 2.5 percent. This shows the compelling economical reason for homeowners to look for good ranking schools.
School Funding and Resources
Well-funded schools with ample resources attract families looking for better educational opportunities for their children. These schools engage in offering advanced placement courses, extra-curricular activities, and better examination facilities hence a higher property value in the surrounding zones. The National Bureau of Economic Research conducted a study that revealed that property values rise by about $20 for every $1 in school funding. Having easy access to resources like Libraries, sports facilities, science labs, technology resources make the area more and more attractive to buyers and investors thus making most properties more valuable.
Community Reputation
It is possible to assure that schools with a good reputation can have a positive impact on the perception of the neighborhood. When there are schools of high quality in a community, demand for homes rises and thus we find the prices skyrocketing. This reputation can be developed on the basis of its past, achievements, parental engagement, and community support.
Convenience and Proximity
One of the most influential elements in the evaluation of homes is the accessibility of Schools and the proximity of schools to residential areas. Families prefer living in neighborhoods where schools are easily accessible, either within walking distance or a short commute away. This convenience helps parents to save their time and energy and contributes to the upgrade of the area, resulting in increased property values.
Stability and Long-Term Investment
Buying a house in a good school area is considered to be a wise investment decision for the future even if you have no children at the age of schooling. Quality schools generally remain stable despite fluctuations in the economic environment, which assures that homes in such districts are secure places to invest. This stability is appreciated by buyers, and by extension, this results in high demand and, therefore, higher returns on investments. Another report from BiggerPockets revealed that all the housing investment properties that were located in areas with the best schools remained almost immune to the effects of value erosion during the housing downturn that occurred from 2006 to 2009, which proves that good school districts have a value-protection quality.
Buyer Preferences and Demographic Shifts
Specific changes in the demographics and buyer’s preferences can affect the attractiveness of school districts or even home value. Especially for new families with children in school going age or the young working people, there is increasing demand for houses in areas of good schools. This usually results in higher prices for housing since there is now a higher demand for them than their supply. Moreover, a significant portion of the buyers have no children but they also want properties in areas with good schools because it is a sign of a healthy real estate market and strong local economy where their investment will be secure.
Therefore, all these factors enhance the likelihood of individuals to buy homes in neighborhoods with high performing schools or districts to improve on the value of their properties. For instance, if a parent is looking for a good school for their children or an investor looking for a secure long term asset, school districts quality is an important element to consider, concerning the choice of a home.
Advantages of Living Near Top-Rated Schools in Illinois
Besides the higher property values, several benefits result from living close to good schools. Here are some of the key benefits to note…
- Educational Opportunities: Better schools offer better educational outcomes for children by offering them choices of advanced classes, highly qualified instructors, and a wider range of extracurricular activities. This can positively change academic performance and lead to better preparation for college and other careers.
- Community Engagement: Areas with good schools often have active and engaged communities. Parents tend to be more involved in school activities, leading to a stronger sense of community and support. This participation has the potential of improving the general well being within the locality.
- Resale Value: Properties in areas with good schools are known to depreciate less and even appreciate in value over time. This makes them profitable for the owners, since the market for these types of properties is always healthy, especially in the event of an economic crisis.
- Safety and Amenities: Good school districts are often located in safer neighborhoods with access to better amenities such as parks, libraries, and recreational facilities. This leads to an increase in the quality of life of the people in the area.
Tips for Choosing the Right Chicagoland Neighborhood for Your Family’s Educational Needs
Selecting the right neighborhood for your family’s needs involves more than just looking at school rankings. Attorney Ben Weaver is well versed and has some tips to help you evaluate your options effectively:
- Research School Ratings: Before selecting an area, it is good to consider the school ratings of the area you intend to move to. The Illinois School Report Card is such a valuable resource for anyone interested in aspects of performance, demographics, or other factors affecting a school.
- Visit the Schools: Schedule visits to the schools in your target neighborhoods. This will help make a more personal connection with the school and develop an understanding of the school and its facilities. Pay attention to the school’s culture, the behavior of students, and the level of engagement from teachers and administrators.
- Consider Your Commute: Evaluate the commute times to work and other essential places. A longer commute might be worth it if it means your children attend a better school, but it’s essential to find a balance that works for your family.
- Check Local Amenities: Search for areas that have features that your family will require in a community. Access to parks, club houses and shopping malls which are nearby can bring improvement to your routine.
- Talk to Residents: Speak with current residents about their experiences with the local schools and community. They can be quite useful and can help one get a better perspective of the neighborhood.
- Evaluate Extracurricular Opportunities: Consider the availability of extracurricular activities and sports programs. Another advantage is in schools that provide numerous activities to widen your children’s experiences and opportunities.
Researching School Ratings in Your Area
Curious about the school ratings in your current neighborhood, or the area where you may move? The Illinois School Report Card gives us a directory of rank by town. This tool may help you to choose the right school district by the comparison of the values highlighted. Visit Illinois School Rankings to analyze the performance of the schools in your preferred areas.
Partner with an Experienced Real Estate Attorney
Navigating the complexities of real estate transactions and understanding how school districts impact property values can be challenging. To get the proper guidance for your situation, we recommend partnering with the right real estate professionals on your side. Choose a realtor or real estate agent that is experienced in your target neighborhood – as well as a trustworthy real estate attorney like Ben Weaver from 23 Legal.
Ben has been assisting young families in Illinois for many years, and he is a family man himself. He is very familiar with the Chicagoland suburbs and capable of recommending great school districts in the area.
Choosing the Right Neighborhood for Your New Home with 23 Legal
Selecting a home in a good school district can significantly impact your property value and your family’s overall well-being. It means that by using criteria that affect property value, perks of living near successful schools, and evaluating neighborhoods, you make a choice that will suit your family’s unique needs and goals.
Do not forget to use helpful (and FREE) resources such as the Illinois School Report Card to get the best school ratings. As always, it’s wise to consult an experienced attorney like Ben Weaver to handle all the legalities of your real estate transaction! We wish you all the best in your search for your new home!
Cheers to giving your kids a great education and creating many lifelong memories together in a wonderful neighborhood! Watch your children grow up safely by choosing the best location for your family.
Accomplish your real estate goals with 23 Legal: (847) 447-6004
Why Choose 23 Legal
23 Legal offers Real Estate and Estate Planning legal services to individuals, families, community associations and small business owners throughout Chicagoland. We know how intimidating “the law” can be. In fact, when most people think of law offices, they think of stuffy leather chairs, huge wooden desks and pompous lawyers who charge outrageous fees. That’s not us! We believe in 1-to-1; the same lawyer should work with you all the way through. Whether you have an estate planning issue, family trust concern, or you have a legal problem in regard to a new home, business, real estate or remodel, you need a lawyer who cares. That’s where Ben comes in! We are great listeners; more than that, we are lawyers who believe that our clients always come first.
