"Student achievement and high graduation rates become important factors during the home selection process," Michael Mahon, president at HER Realtors, covering the Cincinnati, Dayton and Columbus markets in Ohio, said in a release. "Popular school districts further increase demand in subject communities leading to multiple offers and high competition amongst home buyers."
That translates into low volumes, say originators, examining a recent study, which suggests the majority of zip codes with good schools are unaffordable for homebuyers living on the country’s average wage.
According to the study by RealtyTrac, 65% of zip codes with good schools are out of reach for the average American.
"Neighborhoods with the ideal combination of good schools and relatively affordable home prices are very competitive for buyers," Lydia Creasey, associate broker with RE/MAX Alliance in Denver, said in a release. "At the very least, buyers in these markets need to be pro-active and act quickly as soon as a new home hits the market, and in some cases buyers in these neighborhoods have either had to settle for a less-updated or smaller home or increase their price range."
The study found that out of 1,923 zip codes with at least one good school (based on test scores), 1,192 were unaffordable for average American earners.
The cities with the highest number of unaffordable zip codes with good schools are Los Angeles (183), New York (158), San Francisco (77), Chicago (58), and San Diego (49).
The cities with the highest number of affordable zip codes with good schools are Chicago (172), Detroit (45), Phoenix (22), Miami (20) and Charlotte (17).
According to the study, the median home price in zip codes with good schools are almost double the median home price in zip codes with no good schools.
Housing in neighbourhoods with good schools is unaffordable for the average American and the aggressive competition for these homes is squeezing potential business.