Why would you pay more for housing?

Whether you own or rent, whether you have kids in public schools or not, you ARE affected by the reputation of public education in your area. Here are statistics to show that higher-priced neighborhoods can command more because of their school district test scores:

CITY/School District     Avg sales price*     API Score**

Alameda                                 $672,750                    822             

Hayward***                          $324,309                    689

Fremont                                  $595,789                     859

Pleasanton                              $792,857                     901

Castro Valley***                  $485,775                     845

Union City/New Haven     $428,790                     772

San Leandro                           $379,894                      714

San Lorenzo***                    $313,515                       722

Newark                                      $409,667                      747

Dublin                                        $601,683                      854

Livermore                                 $468,948                     815

Sources:

*Bay East Association of REALTORS: single family homes, December 2009

**California Dept. of Education, 2009 Base API

***includes unincorporated areas

4 thoughts on “Why would you pay more for housing?”

  1. Dan

    If you drop Alameda, which has high property values even with low test scores, the rest of the data correlates on a second order trend at 94%!

  2. Anna May

    Well! Island living in Alameda has a price!

  3. Robert Benn

    As a teacher of 20+ years ( in Fremont) I can tell you that the API score is NOT an indicator of housing prices. Any high school statistics student could tell you you have it backwards. Housing prices are a factor in socio-economic level. Expensive houses bring wealthier families. Wealthy families provide more support and emphasis on education. This produces students with higher scores.

    API = economics This is a 100% ‘trend’ across the nation.

    The historical prices of these areas is proportonal to what it was years ago before API and CST tests.

    The Real Estate Community makes me nauseous when they tout API as indicator of ‘good schools.’ Parents need to do the homework and visit the local school before passing judgement.

    Test scores do not measure the climate of the school or a schools ability to develop a child into adults.

  4. Robert Benn, thank you for your post!

    It would be great to get yet another perspective on why a similiar home (in square footage, condition, age, etc.) would command more money in a community with higher test scores than not.

    Perhaps a high school statistics student would like to do a report on this for extra credit?

Comments are closed.