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- Rich families are spending millions to live within walking distance of the best schools, according to data by Realtor.com, cited by Mansion Global.
- The priciest neighborhoods surrounding top-rated elementary schools and secondary schools are mostly in California, and a few in New York.
- The most expensive area on Realtor.com’s list is Los Angeles, California, near Paul Revere Middle School, with a median home sale of $4.9 million.
For many rich families, no price tag is too high when it comes to their children’s education.
The average wealthy New York City family spends $1.7 million on getting their kids into an elite college, according to a previous analysis by Town & Country, and some are spending up to $60,000 on luxury jet services to tour colleges.
Now, new data by Realtor.com first cited by Mansion Global highlights another trend: Parents are willing to spend millions on homes in order to live within walking distance of top-rated public elementary and secondary schools in the US.
To calculate the data for Mansion Global, Realtor.com looked at the median sale prices (capped at $10 million, from June 2017 to May 2018) of single family homes within a one-mile radius of schools across the country. It then narrowed down the list to schools with an eight or above rating according to GreatSchools.org. School rankings were capped at one school per county to create diversity.
The priciest neighborhoods surrounding top-rated elementary schools and secondary schools are mostly in California. For elementary schools, Gardner Bullis Elementary School in Santa Clara, California, ranked No. 1 with a median sale price in the area of $3.56 million. For primary schools, Paul Revere Middle School in Los Angeles, California, topped the price list thanks to a median sale price of $4.9 million.
But a few other states made their way onto the list – the area around Medina Elementary School in King, Washington, had a median sale price of $2.8 million. Likewise, the typical home around Cherry Hills Village Elementary School in Araphoe, Colorado, goes for $2.34 million.
The ultra rich prioritize education
A Seattle-based broker called public schools the “pillar of the real estate values” when speaking with Mansion Global.
“It’s a nourishing loop,” Anna Riley said. “You have high real estate values that attract a well-educated buyer population that really prioritizes schools. They then are happy to invest in the schools, both in terms of time and financial resources.”
New York also made the list several times – New York City had a $1.9 million median sale amount around PS 130 Hernando De Soto and $1.86 million median sale amount near Stuyvesant High School. Westchester, New York, also had a median sale amount of $1.6 million near Scarsdale Senior High School.
However, New York City broker Frances Katzen told Mansion Global that school zone isn’t as big of a priority for high-net-worth buyers whose children attend private schools – but they’re still paying a premium for a good education.
The Wall Street Journal reported that some of New York City’s top private schools cost over $50,000 annually. Business Insider did the math: keep that number at a flat fee for primary and secondary education, and that’s $900,000 for their entire pre-college schooling.
But being within walking distance has its perks. As Javier Vivas, director of economic rea search at Realtor.com, told Mansion Global, “even the ultra rich walk their kids to school.”