School choice good for housing market

PDF: School choice report

Erasing school district lines and allowing students to attend any school they choose could be a boon for local Realtors.

When schools switch to open enrollment, the real estate values of typically lower-valued homes tends to increase, says a recent study by the National Center for the Study of Privatization in Education at Columbia University.

In fact, when given the choice to send their kids wherever they choose, parents are willing to snatch up property in low-cost neighborhoods near schools they perceive as "bad" because they can still send their children to a "good" school in a high-cost neighborhood where they may not be able to afford to live.

The equilibrium that results is higher values for homes in less-expensive neighborhoods -- between $3,000 and $6,000 per home the report says -- and lower values for those in more expensive neighborhoods, the researchers say.