Do Choice Schools Break the Link Between Public Schools and Property Values? Evidence from House Prices in New York City
While school choice has attracted much attention from policymakers and researchers, virtually all of the research has focused on the relationship between school choice and student academic performance. There is, in contrast, little work examining whether additional choice schools weaken the link between residential property values and locally zoned schools — despite the well accepted theoretical (and empirical) link between schools and housing. As school choice becomes more important in reforming urban school systems, and improving public schools is critical for attracting and retaining middle class families in urban neighborhoods, it is important to understand how increasing school choice shapes the long-term economic health and viability of the country's central cities. In this paper, we examine how choice schools affect house prices, particularly the link between the quality of locally zoned schools and surrounding housing values. Our study utilizes rich data on New York City public elementary schools geo-coded and matched to data on property sales for a fifteen-year period beginning in 1988. To identify the impact of a choice school on the capitalization of school quality into housing values first we incorporate a boundary discontinuity approach to compare the capitalization of zoned school quality into housing prices of buildings that are close to one another but in different elementary school attendance zones. We rely on smaller and smaller distances from the boundary to test the stability of our results. Second, we compare housing units that are within 3000ft of a choice school to housing units outside of these rings, which is traditionally considered the ‘walk zone’ around a school. Third, we take advantage of choice school openings to look at the capitalization rates before and after the choice school opens. We find that the proximity of alternative school choices does weaken the link between zoned schools and property values. The opening of a choice school
(This abstract was borrowed from another version of this item.)
|Date of creation:||Feb 2014|
|Date of revision:|
|Contact details of provider:|| Postal: 100 Morrissey Blvd., Boston 02125|
Web page: http://economics.umb.edu
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Patrick Bayer & Fernando Ferreira & Robert McMillan, 2007.
"A Unified Framework for Measuring Preferences for Schools and Neighborhoods,"
Journal of Political Economy,
University of Chicago Press, vol. 115(4), pages 588-638, 08.
- Patrick Bayer & Fernando Ferreira & Robert McMillan, 2007. "A Unified Framework for Measuring Preferences for Schools and Neighborhoods," NBER Working Papers 13236, National Bureau of Economic Research, Inc.
- Patrick Bayer & Fernando Ferreira & Robert McMillan, 2007. "A Unified Framework for Measuring Preferences for Schools and Neighborhoods," Working Papers 07-27, Center for Economic Studies, U.S. Census Bureau.
- Nechyba, Thomas, 2003.
"School finance, spatial income segregation, and the nature of communities,"
Journal of Urban Economics,
Elsevier, vol. 54(1), pages 61-88, July.
- Nechyba, Thomas J., 2002. "School Finance, Spatial Income Segregation and the Nature of Communities," Working Papers 02-17, Duke University, Department of Economics.
- Machin, Stephen & Salvanes, Kjell G., 2010.
"Valuing School Quality via a School Choice Reform,"
IZA Discussion Papers
4719, Institute for the Study of Labor (IZA).
- Stephen Machin & Kjell Salvanes, 2010. "Valuing school quality via school choice reform," LSE Research Online Documents on Economics 28286, London School of Economics and Political Science, LSE Library.
- Stephen Machin & Kjell Salvanes, 2010. "Valuing School Quality Via School Choice Reform," CEE Discussion Papers 0113, Centre for the Economics of Education, LSE.
- Fack, Gabrielle & Grenet, Julien, 2010.
"When do better schools raise housing prices? Evidence from Paris public and private schools,"
Journal of Public Economics,
Elsevier, vol. 94(1-2), pages 59-77, February.
- Gabrielle Fack & Julien Grenet, 2010. "When do Better Schools Raise Housing Prices? Evidence from Paris Public and Private Schools," CEE Discussion Papers 0119, Centre for the Economics of Education, LSE.
- Gabrielle Fack & Julien Grenet, 2010. "When do better schools raise housing prices? Evidence from Paris public and private schools," Post-Print halshs-00754480, HAL.
- Horowitz, John & Keil, Stanley & Spector, Lee, 2009.
"Do Charter Schools Affect Property Values?,"
The Review of Regional Studies,
Southern Regional Science Association, vol. 39(3), pages 297-316.
- 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.
- Nguyen-Hoang, Phuong & Yinger, John, 2011. "The capitalization of school quality into house values: A review," Journal of Housing Economics, Elsevier, vol. 20(1), pages 30-48, March.
- Brunner, Eric J. & Cho, Sung-Woo & Reback, Randall, 2012. "Mobility, housing markets, and schools: Estimating the effects of inter-district choice programs," Journal of Public Economics, Elsevier, vol. 96(7), pages 604-614.
- Reback, Randall, 2005. "House prices and the provision of local public services: capitalization under school choice programs," Journal of Urban Economics, Elsevier, vol. 57(2), pages 275-301, March.
- Stephen Machin, 2011.
"Houses and schools: valuation of school quality through the housing market: EALE 2010 presidential address,"
LSE Research Online Documents on Economics
47495, London School of Economics and Political Science, LSE Library.
- Stephen Machin, 2011. "Houses and Schools: Valuation of School Quality through then Housing Market - EALE 2010 Presidential Address," CEP Occasional Papers 29, Centre for Economic Performance, LSE.
- Machin, Stephen, 2011. "Houses and schools: Valuation of school quality through the housing market," Labour Economics, Elsevier, vol. 18(6), pages 723-729.
- Sandra E. Black, 1999. "Do Better Schools Matter? Parental Valuation of Elementary Education," The Quarterly Journal of Economics, Oxford University Press, vol. 114(2), pages 577-599.
- Cecilia Elena Rouse & Lisa Barrow, 2009. "School Vouchers and Student Achievement: Recent Evidence and Remaining Questions," Annual Review of Economics, Annual Reviews, vol. 1(1), pages 17-42, 05.
When requesting a correction, please mention this item's handle: RePEc:mab:wpaper:2014_03. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Arjun Jayadev)
If references are entirely missing, you can add them using this form.