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Magnet Schools and the Differential Impact of School Quality on Residential Property Values

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Abstract

Previous research has concluded that public school quality is capitalized into local house prices. This result is reasonable if residents are assigned to local schools and have no freedom of school choice. The magnet school concept gives parents some degree of freedom of choice for schools within a local school district. The availability of magnet schools should thus reduce the capitalized value of school quality within a school district. This hypothesis is tested using data from Wake County (Raleigh), North Carolina. The results show that school levels where the magnet program has been most extensively implemented have lower capitalized values.

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  • Michael L. Walden, 1990. "Magnet Schools and the Differential Impact of School Quality on Residential Property Values," Journal of Real Estate Research, American Real Estate Society, vol. 5(2), pages 221-230.
    • Handle: RePEc:jre:issued:v:5:n:2:1990:p:221-230
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    1. G. Donald Jud & James M. Watts, 1981. "Schools and Housing Values," Land Economics, University of Wisconsin Press, vol. 57(3), pages 459-470.
    2. G. Donald Jud, 1985. "A Further Note on Schools and Housing Values," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 13(4), pages 452-462, December.
    3. Vladimir Bajic, 1985. "Housing‐Market Segmentation and Demand for Housing Attributes: Some Empirical Findings," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 13(1), pages 58-75, March.
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    Cited by:

    1. Brasington, D. M., 2003. "The supply of public school quality," Economics of Education Review, Elsevier, vol. 22(4), pages 367-377, August.
    2. Fedderke, Johannes W. & Chen, Tinghua, 2023. "Generalizing the “Masterpiece Effect” in fine art pricing: Quantile Hedonic regression results for the South African fine art market, 2009–2021," Economic Modelling, Elsevier, vol. 124(C).
    3. Kathy J. Hayes & Lori L. Taylor, 1996. "Neighborhood school characteristics: what signals quality to homebuyers?," Economic and Financial Policy Review, Federal Reserve Bank of Dallas, issue Q IV, pages 2-9.
    4. Pizzol, Bruna & Giannotti, Mariana & Tomasiello, Diego Bogado, 2021. "Qualifying accessibility to education to investigate spatial equity," Journal of Transport Geography, Elsevier, vol. 96(C).
    5. Ihlanfeldt, Keith R. & Scafidi, Benjamin P., 2002. "An Empirical Analysis of the Cause of Neighborhood Racial Segregation," Berkeley Program on Housing and Urban Policy, Working Paper Series qt70j3n8bh, Berkeley Program on Housing and Urban Policy.
    6. Andreyeva, Elena & Patrick, Carlianne, 2017. "Paying for priority in school choice: Capitalization effects of charter school admission zones," Journal of Urban Economics, Elsevier, vol. 100(C), pages 19-32.
    7. Geoffrey K. Turnbull & Minrong Zheng, 2022. "Desegregation Litigation and School Quality Capitalization," The Journal of Real Estate Finance and Economics, Springer, vol. 64(2), pages 210-227, February.
    8. Steven Carter, 2008. "Court-ordered Busing and Housing Prices: The Case of Pasadena and San Marino," Journal of Real Estate Research, American Real Estate Society, vol. 30(3), pages 377-394.
    9. Jeffrey M. Weinstein, 2016. "The Impact Of School Racial Compositions On Neighborhood Racial Compositions: Evidence From School Redistricting," Economic Inquiry, Western Economic Association International, vol. 54(3), pages 1365-1382, July.
    10. Geoffrey K. Turnbull & Minrong Zheng, 2021. "A Meta‐Analysis of School Quality Capitalization in U.S. House Prices," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 49(4), pages 1120-1171, December.
    11. Tao Zhou & Rui Zhao & Yulin Zhou, 2017. "Factors Influencing Land Development and Redevelopment during China’s Rapid Urbanization: Evidence from Haikou City, 2003–2016," Sustainability, MDPI, vol. 9(11), pages 1-17, November.
    12. Chowdhury, Tasnim & Datta, Rajib & Mohajan, Haradhan, 2013. "Green finance is essential for economic development and sustainability," MPRA Paper 51169, University Library of Munich, Germany, revised 09 Jun 2013.
    13. Pengyu Zhu & Yi Zhang & Juan Wang, 2023. "Canceling the admission priority of private schools enlarges housing price gap in public school districts: Evidence from Shanghai's new admission policy," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 51(1), pages 49-67, January.
    14. Chugunov, D., 2013. "Impact of School Quality and Neighborhoods on Housing Prices in Moscow," Journal of the New Economic Association, New Economic Association, vol. 17(1), pages 87-112.
    15. Eli Beracha & William G. Hardin, 2021. "The housing price premium associated with charter schools," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 49(4), pages 1267-1289, December.
    16. Leslie Rosenthal, 2003. "The Value of Secondary School Quality," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 65(3), pages 329-355, July.
    17. Elena Shakina & Angel Barajas, 2013. "The Contribution of Intellectual Capital to Value Creation," Contemporary Economics, University of Economics and Human Sciences in Warsaw., vol. 7(4), December.
    18. David M. Brasington, 1999. "Which Measures of School Quality Does the Housing Market Value?," Journal of Real Estate Research, American Real Estate Society, vol. 18(3), pages 395-414.
    19. Su Han Chan & Shin-Hering Michelle Chu & George H. Lentz & Ko Wang, 1998. "Intra-Project Externality and Layout Variables in Residential Condominium Appraisals," Journal of Real Estate Research, American Real Estate Society, vol. 15(2), pages 131-146.
    20. Man Yuan & Haolan Pan & Zhuoran Shan & Da Feng, 2022. "Spatial Differences in the Effect of Communities’ Built Environment on Residents’ Health: A Case Study in Wuhan, China," IJERPH, MDPI, vol. 19(3), pages 1-18, January.
    21. Michael Devaney & William Rayburn, 1993. "Neighborhood Racial Transition and Housing Returns: A Portfolio Approach," Journal of Real Estate Research, American Real Estate Society, vol. 8(2), pages 239-252.
    22. David M. Brasington, 2002. "The Demand for Local Public Goods: The Case of Public School Quality," Public Finance Review, , vol. 30(3), pages 163-187, May.

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    JEL classification:

    • L85 - Industrial Organization - - Industry Studies: Services - - - Real Estate Services

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