Several external factors impact home values, but perhaps none is more important than the quality of nearby public schools. The National Association of Realtors (NAR) and other real estate experts have long associated property values with school quality. To that end, HomeUnion created a new study identifying the most affordable zip codes in major U.S. metro areas with the best public schools. In Q1 2016, zip codes in the Kansas City, Indianapolis and St. Louis metropolitan areas topped the affordability list, while zip codes in the San Francisco, San Jose and Miami MSAs earned mentions at the bottom of the list.
Source: HomeUnion Research Services
Blue Springs, MO, outside of Kansas City, was named the most affordable zip code (64014) with the best schools. Homes in Blue Springs have a median price of $143,000, while schools in that zip code have an average ranking in the 87.8 percentile by Maponics. The zip code 46060 in Noblesville, IN – a suburb of Indianapolis – ranked second with a median home price of $157,000 and an average ranking in the 84.5 percentile by Maponics. In the southwest corner of St. Louis, MO, the median home price in the zip code 63126 is $160,000 and a high school ranking exceeding the 95.5th percentile by Maponics.
“The quality of public schools is one of the most important factors to consider when buying a home, especially for families,” says Don Ganguly, CEO of HomeUnion. “In many cases, home buyers are willing to pay more to be located in a neighborhood with highly ranked schools, even if it means downsizing into a smaller home.”
Specifically, home buyers should consider a school’s test scores when making the decision to buy a home if they have children or plan to have children in the future, according to U.S. News & World Report. Graduation rates and student-to-teacher ratios also provide a deeper assessment of school quality.
Remote residential real estate investors require similar insight into school quality since they’re trusting someone else with their money. To ensure that investors make the best financial decisions, each investment home listed for sale on HomeUnion’s investor portal features comprehensive data on neighborhoods, including public schools information. The website goes a step further in assessing investment quality by displaying statistics on job growth, crime, nearby retailers, community services and other information.
Below is a list of the most affordable zip codes with the best schools:
|Metro Area||Zip Code||School Rating||Q1 2016 Median Home Price||Submarket|
|Kansas City||64014||87.8||$143,000||Blue Springs, MO|
|St. Louis||63126||95.5||$160,000||Southwest section of St. Louis, MO|
|Chicago||60301||91.3||$172,000||Oak Park, IL|
|Cleveland||44147||90.6||$179,000||Broadview Heights, OH|
|Austin||78705||87.8||$187,000||Central section of Austin, TX|
|Memphis||38654||90.6||$190,000||Olive Branch, MS|
|Charlotte||28079||81.6||$196,000||Indian Trail, NC|
|Dallas/Fort Worth||75023||81.1||$201,000||Plano, TX|
|Minneapolis||55020||84.6||$209,000||Elko New Market, MN|
|San Antonio||78259||89.8||$226,000||North San Antonio, TX|
|Tampa||34685||81.1||$246,000||Palm Harbor, FL|
|Jacksonville||32259||88.3||$268,000||St. John’s, FL|
|Milwaukee||53122||92.3||$273,000||Elm Grove, WI|
|Portland||97035||89.0||$320,000||Lake Oswego, OR|
|San Diego||92126||89.1||$397,000||Mira Mesa section of San Diego|
|Orange County||92688||89.4||$425,000||Rancho Santa Margarita, CA|
|Inland Empire||91737||80.7||$455,000||Rancho Cucamonga, CA|
|Los Angeles County||91020||93.2||$490,000||Montrose, CA|
|San Jose||95035||80.4||$590,000||Milpitas, CA|
|San Francisco||94947||80.3||$612,000||Novato, CA|
Source: HomeUnion Research Services, Maponics