ReCasa Financial Blog

In 2023, our public school system proposed a school levy which recently failed. This levy was proposed in order to protect existing staff, programs, and current class sizes. This operating levy would provide funding for day-to-day expenditures such as salaries, utilities, transportation, activities and programming. Once the levy failed, people started asking more and more questions pertaining to the consequences of the failed school levy. Residents began worrying that the failed levy will create a decrease in property value. Is there a connection between property values and school performance? 

With the failed levy, some families are starting to consider relocating to get a better education for their children as they fear their children will not get a good education and the personal help they may need to succeed academically. 

Many families look at school ratings when determining where to move. While there are many factors that play a part in property value, there are also many factors that play a part in a good public school system too. People are unsure of whether property values are higher due to a good school district or whether schools have a higher ranking due to high property value. Whatever the case, most homebuyers are going to want to purchase properties within high-ranking school districts.   

A public school’s ranking is determined by test score performances, graduation rates, class size, programs, activities, and school funding.  Low school funding could potential mean larger class sizes which could potentially mean lower test ratings which would mean lower school ratings which could potentially mean lower property values as people would not want to move to these areas. According to a 2003 report by National Bureau of Economic Research, for every $1 spent on public schools, property values increase by $20.



At ReCasa Financial Group, we always recommend doing your research before purchasing a property, but you may want to dig a little deeper into the school systems before purchasing your next investment property.