How School Districts Impact Real Estate Values

It is "Back to School" time and if your newsfeed has been like ours it has been full of cute "Back to School" pictures. In light of school starting back, I thought it would be a good time to take a look at how school district's impact housing values in real estate.

"Location, Location, Location"- it is what you always hear in real estate. This is because real estate is fixed and immovable. The school district in which your property is located has an impact on its value. Ask any real estate agent and they will tell you how important the school district is when they are selling or looking for properties for buyers. One of the first questions asked will be about the school district in which the property located.

To illustrate the impact of school districts on real estate values, we took a look at the unique development of Providence Village in Denton County in two separate school districts. Providence Village began as a Master Planned Development that developed in an unincorporated area in Denton County along Hwy 380. This is area is located at the outer edges of Aubrey ISD and Denton ISD. Providence Village is now an incorporated town with a population of 4,786 per US Census 2010. In the master planned community of Providence Village all homes are of Cape Cod or Craftsman style architecture. The community has a home owners association and amenities include a Club House, 2 Waterparks, Parks, Playgrounds, 2 Dog Parks, Greenbelt and a 25 acre lake. It is a homogeneous development with homes of similar age, design and market appeal, which is why it makes a good study of how school district impact the values of homes. We decided to look at all homes in Providence with living area (gla) between 1,800 - 2,200 sq ft. Here is a map of all sales that fall into these parameters:

The homes to the north are located in the Aubrey Independent School District and the homes located to the south are located in the Denton Independent School District. As you can see here:

In researching sales within the past 12 months in the Aubrey ISD there are 40 sales of homes with gla between 1,800 and 2,200 sq ft. The mean sale price is $180,015 and the median sale price is $178,500.

When only changing the search parameters to Denton ISD the results are 38 sales and the mean price is $171,138 and the median price is $170,000.

When we look at values we always want to compare apples to apples to see