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How Does School District Consolidation Affect Property Values? A Case Study of New York

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  • William D. Duncombe
  • John Yinger
  • Pengju Zhang

Abstract

This article explores the impact of school district consolidation on house values based on house sales in upstate New York State from 2000 to 2012. By combining propensity score matching (PSM) and double-sales data to compare house value changes in consolidating and comparable school districts, we find that, except in one relatively large district, consolidation has a negative impact on house values during the years right after it occurs and that this effect then fades away and is eventually reversed. This pattern suggests that it takes time either for the advantages of consolidation to be apparent or for the people who prefer consolidated districts to move in. Finally, as in previous studies, the long-run impacts of consolidation on house values are positive in census tracts that initially have low incomes, but negative in high-income census tracts, where parents may have a relatively large willingness to retain the nonbudgetary advantages of small districts.

Suggested Citation

  • William D. Duncombe & John Yinger & Pengju Zhang, 2016. "How Does School District Consolidation Affect Property Values? A Case Study of New York," Public Finance Review, , vol. 44(1), pages 52-79, January.
    • Handle: RePEc:sae:pubfin:v:44:y:2016:i:1:p:52-79
    DOI: 10.1177/1091142114524617
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    References listed on IDEAS

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    Cited by:

    1. Masayoshi Hayashi & Takafumi Suzuki, 2018. "Municipal Mergers and Capitalization: Evaluating the Heisei Territorial Reform in Japan," CIRJE F-Series CIRJE-F-1105, CIRJE, Faculty of Economics, University of Tokyo.
    2. Pengju Zhang, 2023. "The fiscal and economic impacts of municipal dissolution: evidence from New York," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 30(4), pages 948-1001, August.
    3. Collins, Courtney A. & Kaplan, Erin K., 2022. "Demand for School Quality and Local District Administration," Economics of Education Review, Elsevier, vol. 88(C).
    4. Yu, Huayi & Hou, Yujuan, 2021. "A tale of two districts: The impact of district consolidation on property values in Shanghai," Regional Science and Urban Economics, Elsevier, vol. 87(C).
    5. Hu, Lirong & He, Shenjing & Luo, Yun & Su, Shiliang & Xin, Jing & Weng, Min, 2020. "A social-media-based approach to assessing the effectiveness of equitable housing policy in mitigating education accessibility induced social inequalities in Shanghai, China," Land Use Policy, Elsevier, vol. 94(C).

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