Capitalization of Charter Schools into Residential Property Values

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.

The Fiscal Externalities of Charter Schools: Evidence from North Carolina

“…As students can attend charter schools outside their district of residence in North Carolina, however, any incentive to residentially sort to access charter schools is lessened. Also, the empirical evidence from home prices suggests that such incentives are overall weak (Brehm, Imberman, and Naretta 2017). 7.…”

The housing price premium associated with charter schools

“…The study uses a small data set from a single medium-size town. A more recent study by Brehm et al (2017) proxies charter school impact using estimated charter school slot availability as the salient factor and finds no relationship between the availability of charter school slots and housing values. Patrick (2015) and Andreyeva and Patrick (2017) evaluate the impact of priority zones for charter school admissions and find a meaningful value impact for housing in the primary zone that receives preference with a stronger value effect when the traditional school to which the housing unit is assigned is a lower performing school.…”

“…The most relevant studies includeHorowitz, Keil, and Spector (2009),Schwartz, Voicu, and Horn (2014), Brehm, Imberman, andNaretta (2017), andAndreyeva and Patrick (2017). Turnbull, Zahirovic-Herbert, and Zheng (2018) look at charter schools in a robustness test in their assessment of uncertainty in school assignments.2 For the study period, there are 219 charters schools within the Broward County and Miami-Dade County school systems.…”

The role of schools in the de- and revalorization of stigmatized neighborhoods: The case of Berlin-Neukölln

“…This also means that the actual or perceived quality of schools can influence demand for housing (Freidus, 2019;Ley & Dobson, 2008;Posey-Maddox et al, 2014;Schwartz et al, 2014) and the possibility for closing or reclosing rent gaps swiftly. Schools that are seen to be underperforming or even dangerous can keep rent levels and property values low, and vice versa (Brehm et al, 2017;Gibbons & Machin, 2003) or they can cause a neighborhood to degentrify (Lees & Bondi, 1995).…”