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School district quality and property values: Examining differences along school district boundaries

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  • Dhar, Paramita
  • Ross, Stephen L

Abstract

Examining differences across school district boundaries rather than school attendance zone boundaries has several advantages. These advantages include being applicable when attendance zones are not available or less relevant to educational outcomes as arises with within district school choice and for examining the effect of factors like school spending or property taxes that do not vary within districts. However, school district boundaries have often been in place for many years allowing households to sort based on school quality and potentially creating distinct neighborhoods on either side of boundaries. We estimate models of housing prices using repeated cross-sections of housing transactions near school district boundaries in Connecticut. These models exploit changes over time to control for across boundary differences in neighborhood quality. We find significant effects of test scores on property values, but those effects are notably smaller than both OLS and traditional boundary fixed effects estimates.

Suggested Citation

  • Dhar, Paramita & Ross, Stephen L, 2012. "School district quality and property values: Examining differences along school district boundaries," Journal of Urban Economics, Elsevier, vol. 71(1), pages 18-25.
  • Handle: RePEc:eee:juecon:v:71:y:2012:i:1:p:18-25
    DOI: 10.1016/j.jue.2011.08.003
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    References listed on IDEAS

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    Cited by:

    1. Biel E. Metz, 2015. "Effect of Distance to Schooling on Home Prices," The Review of Regional Studies, Southern Regional Science Association, vol. 45(2), pages 151-171, Fall.
    2. De Fraja, Gianni & Martínez-Mora, Francisco, 2014. "The desegregating effect of school tracking," Journal of Urban Economics, Elsevier, vol. 80(C), pages 164-177.
    3. Huang, Daisy J. & Leung, Charles Ka Yui & Tse, Chung-Yi, 2017. "What account for the differences in rent-price ratio and turnover rate? A search-and-matching approach," MPRA Paper 76864, University Library of Munich, Germany.
    4. Depro, Brooks & Rouse, Kathryn, 2015. "The effect of multi-track year-round academic calendars on property values: Evidence from district imposed school calendar conversions," Economics of Education Review, Elsevier, vol. 49(C), pages 157-171.
    5. Graves, Jennifer, 2013. "School calendars, child care availability and maternal employment," Journal of Urban Economics, Elsevier, vol. 78(C), pages 57-70.
    6. Schwartz, Amy Ellen & Voicu, Ioan & Horn, Keren Mertens, 2014. "Do choice schools break the link between public schools and property values? Evidence from house prices in New York City," Regional Science and Urban Economics, Elsevier, vol. 49(C), pages 1-10.
    7. Brunes, Fredrik & Hermansson, Cecilia & Song, Han-Suck & Wilhelmsson, Mats, 2016. "NIMBYs for the rich and YIMBYs for the poor: Analyzing the property price effects of infill development," Working Paper Series 16/2, Royal Institute of Technology, Department of Real Estate and Construction Management & Centre for Banking and Finance (cefin).
    8. Gibbons, Stephen & Machin, Stephen & Silva, Olmo, 2013. "Valuing school quality using boundary discontinuity," LSE Research Online Documents on Economics 45246, London School of Economics and Political Science, LSE Library.
    9. Gibbons, Stephen & Machin, Stephen & Silva, Olmo, 2013. "Valuing school quality using boundary discontinuities," Journal of Urban Economics, Elsevier, vol. 75(C), pages 15-28.
    10. Chung, Il Hwan, 2015. "School choice, housing prices, and residential sorting: Empirical evidence from inter-and intra-district choice," Regional Science and Urban Economics, Elsevier, vol. 52(C), pages 39-49.
    11. Li, Qiang, 2014. "Ethnic diversity and neighborhood house prices," Regional Science and Urban Economics, Elsevier, vol. 48(C), pages 21-38.
    12. Luigi Benfratello & Giuseppe Sorrenti & Gilberto Turati, 2015. "Tracking in the Tracks in the Italian Schooling: Inequality Patterns in an Urban Context," Working papers 030, Department of Economics and Statistics (Dipartimento di Scienze Economico-Sociali e Matematico-Statistiche), University of Torino.
    13. Eerola, Essi & Lyytikäinen, Teemu, 2015. "On the role of public price information in housing markets," Regional Science and Urban Economics, Elsevier, vol. 53(C), pages 74-84.
    14. Jørgen Lauridsen & Niels Nannerup & Morten Skak, 2013. "House prices and land regulation in the Copenhagen area," Journal of Property Research, Taylor & Francis Journals, vol. 30(3), pages 205-220, September.
    15. repec:eee:jhouse:v:36:y:2017:i:c:p:62-72 is not listed on IDEAS
    16. Agarwal, Sumit & Rengarajan, Satyanarain & Sing, Tien Foo & Yang, Yang, 2016. "School allocation rules and housing prices: A quasi-experiment with school relocation events in Singapore," Regional Science and Urban Economics, Elsevier, vol. 58(C), pages 42-56.
    17. repec:mab:wpaper:23 is not listed on IDEAS
    18. repec:gam:jsusta:v:9:y:2017:i:6:p:1075-:d:102126 is not listed on IDEAS
    19. Randy Anderson & Raymond Brastow & Geoffrey Turnbull & Bennie Waller, 2014. "Seller Over-Pricing and Listing Contract Length: The Effects of Endogenous Listing Contracts on Housing Markets," The Journal of Real Estate Finance and Economics, Springer, vol. 49(3), pages 434-450, October.

    More about this item

    Keywords

    School district performance; Housing price; District boundaries; Test scores; Omitted neighborhood attributes;

    JEL classification:

    • I2 - Health, Education, and Welfare - - Education
    • R2 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis
    • R5 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis

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