Neighbor News
📉 The Link Between School Funding and Property Values
Cutting education funding hurts property values — strong schools and higher home prices are closely linked, studies show.
Research indicates that reductions in school funding can lead to declines in property values. A study by the National Bureau of Economic Research found that a $1 increase in per-pupil state aid results in a $20 increase in per-pupil housing values, highlighting the value residents place on education expenditure. NBER
Similarly, the Urban Institute reported that a 1% increase in school spending is associated with a 1.03% rise in house prices, suggesting that households value school funding and are willing to pay more for homes in well-funded school districts. Housing Matters
🏡 How School Quality Influences Homebuyers
Homebuyers often prioritize school quality when choosing where to live. A study by the Brookings Institution found that home values tend to be higher in areas with high-scoring schools. This premium reflects the demand for quality education and the willingness of families to invest in homes located in reputable school districts.Raleigh RealtyFCB Homes
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⚠️ Risks of Decreasing Education Funding
Reducing education budgets can lead to larger class sizes, outdated materials, and diminished extracurricular offerings, all of which can negatively affect student performance and, consequently, school ratings. Lower school ratings can deter prospective homebuyers, leading to decreased demand and falling property values.
In Connecticut's Region 16, for example, concerns have been raised about budget increases and their impact on local taxes. While some residents worry about higher taxes, others fear that insufficient funding could harm school quality and, by extension, property values. CT Insider
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🧭 Conclusion
Investing in education is not only crucial for student success but also for maintaining and enhancing property values. Communities that prioritize school funding often reap the benefits of higher home values and a more robust local economy. Conversely, cuts to education budgets can have far-reaching negative effects, including declining property values and reduced community appeal.
