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Capitalization of Charter Schools into Residential Property Values

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  • Scott A. Imberman
  • Michael Naretta
  • Margaret O’Rourke

Abstract

While prior research has found clear impacts of schools and school quality on property values, little is known about whether charter schools have similar effects. Using sale price data for residential properties in Los Angeles County from 2008 to 2011 we estimate the neighborhood level impact of charter schools on housing prices. Using an identification strategy that relies on census block fixed-effects and variation in charter penetration over time, we find little evidence that the availability of charter schools affect housing prices on average. However, we do find that when restricting to charter schools located in the same school district as the household, housing prices outside Los Angeles Unified School District fall in response to an increase in nearby charter penetration.

Suggested Citation

  • Scott A. Imberman & Michael Naretta & Margaret O’Rourke, 2015. "Capitalization of Charter Schools into Residential Property Values," NBER Working Papers 20990, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:20990
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    Cited by:

    1. Michael S. Kofoed & Christopher Fawson, 2021. "A neighborly welcome? Charter school entrance and public school competition on the capital margin," Public Choice, Springer, vol. 188(1), pages 75-94, July.
    2. Cook, Jason B., 2018. "The effect of charter competition on unionized district revenues and resource allocation," Journal of Public Economics, Elsevier, vol. 158(C), pages 48-62.
    3. 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.
    4. Bo Feng, 2023. "Charter school proliferation and school district fiscal stress, a chicken‐egg problem," Growth and Change, Wiley Blackwell, vol. 54(4), pages 853-869, December.
    5. Helen F. Ladd & John D. Singleton, 2020. "The Fiscal Externalities of Charter Schools: Evidence from North Carolina," Education Finance and Policy, MIT Press, vol. 15(1), pages 191-208, Winter.
    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. Doko Tchatoka, Firmin & Varvaris, Vanessa, 2021. "Neighbourhood, school zoning and the housing market: Evidence from New South Wales," Journal of Housing Economics, Elsevier, vol. 54(C).

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    More about this item

    JEL classification:

    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand

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