I came across an interesting blog post from my fellow Houston Realtor about one of my favorite and hot topics which is relationship betwqen Houston cost and Public Schools. This topic comes up every time I talk to a new home buyer who has kids and very much poised in getting them to a exemplary school or good school district. Most importantly Asian community parents especially South Asians put more emphasis on their kids education and activities and don’t mind paying higher housing cost.

Let’s see the study outcome. The study was conducted by the Brookings Institute through the Metropolitan Policy Program examining 84,077 schools and how the quality of education is impacted by housing costs and city zoning. The majority of the data in the study was collected by GreatSchool and the National Center for Education Statistics between 2009 and 2011.

Here are few important findings,
An analysis of national and metropolitan data on public school populations and state standardized test scores for 84,077 schools in 2010 and 2011 reveals that:

• Nationwide, the average low-income student attends a school that scores at the 42nd percentile on state exams, while the average middle/high-income student attends a school that scores at the 61st percentile on state exams. This school test-score gap is even wider between black and Latino students and white students. There is increasingly strong evidence—from this report and other studies—that low-income students benefit from attending higher-scoring schools.
  
  
• Across the 100 largest metropolitan areas, housing costs an average of 2.4 times as much, or nearly $11,000 more per year, near a high-scoring public school than near a low scoring public school. This housing cost gap reflects that home values are $205,000 higher on average in the neighborhoods of high-scoring versus low-scoring schools. Near high-scoring schools, typical homes have 1.5 additional rooms and the share of housing units that are rented is roughly 30 percentage points lower than in neighborhoods near low-scoring schools.
• Large metro areas with the least restrictive zoning have housing cost gaps that are 40 to 63 percentage points lower than metro areas with the most exclusionary zoning. Eliminating exclusionary zoning in a metro area would, by reducing its housing cost gap, lower its school test-score gap by an estimated 4 to 7 percentiles—a significant share of the observed gap between schools serving the average low-income versus middle/higher-income student. As the nation grapples with the growing gap between rich and poor and an economy increasingly reliant on formal education, public policies should

The study clearly shows that parents are willing to pay more for their housing to get their kids into better schools which has a cyclic effect pushing the price more and more and increasing the gap. Katy, Telfair, Memorial Heights are few areas around houston which is seeing the inflex of new home buyers who give importance to good education and don’t mind paying high cost for their homes.

Studies have shown that placing low income children into high income area schools does actually increase their academic achievement. However, is this move worth the added cost when looking solely at education? The National Center for Education Statistics during the 2007-2008 school year places nationwide private education tuition for elementary and secondary students at $8,549. For private Catholic schools the cost drops to approximately $6000 per year. These values as stated are a nationwide average. When compared by region the Northeast has the biggest discrepancy showing that housing costs are 3.5 times higher in high scoring public school systems. In contrast Boise, Modesto, Madison, Little Rock, Honolulu, and parts of Utah and Florida exhibited the lowest ratios (1.3 – 1.6). Thus, it is clear that private education for elementary and secondary education costs less than the cost to move within a highly rated school district.

My philosophy around this much debated topic from a guy who studied in a state sponsored school in India is every kid is unique and has unique ability. Brighter kids always do well when given opportunity. They know how to out smart or get smart than the other kid. We has parents just need to provide the right opportunity for them to grow and develop their skills. We shouldn’t pushing and forcing them by putting them in very competitive environment that might back fire on them. So I would opt for a decent schools which can provide better place to learn and play and grow which is not basically a high scoring exemplary school. I like the kids to also learn to grow from an environment realistic enough to approach their future better instead of keeping them in defined cell and protecting them. I don’t mind paying high educational cost but not really high housing cost just to get to an A+ school. That’s my take on this subject and everybody has their own view and I respect it.

To read the full study, go to brookings.edu.

About Vijaianand Thirnageswaram

I am a Proud Realtor of Texas, trying to guide and help clients to find their dream home and educate them to buy them for right price. I am also a Candidate for CFP who has more financial knowledge which allows me share and educate clients in any financial decision making process.

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