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schools can typically command higher home values due to their close proximity to the <br />private school. <br />How do Good Schools and Bad Schools Impact Home Values? <br />A study conducted by the Brookings Institution found that home values tend to be higher in <br />areas where high-scoring schools are located. After researching one hundred of the <br />largest metro areas in the United States, the study found an average difference of <br />$205,000 in home prices between houses in high-performing school districts and low- <br />performing school districts. Many homes located near high-performing schools were also <br />found to be larger, with 1.5 more rooms than homes found in lower-performing school <br />districts. Interestingly, rental options were also found to be around thirty percent lower in <br />volume in high-performing school districts. Knowing this, it is safe to say that those living <br />in good school districts will pay a considerable amount to reside there. <br />What’s the Relationship Between Public School Ratings and <br />Property Values? <br />According to the National Bureau of Economic Research, there is a strong correlation <br />between school expenditures and home values. A report titled, “School Spending Raises <br />Property Values,” found that for every dollar spent on public schools in an area, home <br />values increased by $20. These findings indicate that additional school expenditures have <br />a beneficial impact on all homeowners in the community, whether those residents have <br />children in the public school system or not. <br />Does a New School Increase my Home Value? <br />According to a study published in the Economics of Education Review, students tend to <br />score lower on testing in the first few years after a new school is built or renovated. This is <br />primarily because new schools typically require additional construction projects while <br />school is in session, which is distracting to students. However, after all construction is <br />complete and students are no longer being disrupted, the study found that student test <br />scores went back to what they were prior to construction. The students also seemed to <br />benefit from the improvements made to the school over the long term. <br />If your home is located in a district with a school that is currently undergoing construction <br />and test scores have been negatively impacted, it may better to hold off on selling your <br />home until the work is complete (if possible). Test scores will most likely increase after the <br />capital improvements have been made which will be a stronger selling point to buyers