The housing price premium associated with charter schools

Abstract

The existing literature documents a clear relation between public school quality and a residential real estate price premium. The literature on whether charter school availability and quality are associated with a price premium, however, is surprisingly thin. After controlling for public school quality, we provide evidence that residential real estate price premiums are associated with charter school availability and quality. The price premium is smaller than that of quality public schools, but is economically meaningful when the quality of charter schools exceeds the quality of public schools. The price premium associated with charter schools is more prominent in areas where a large percentage of the population is between the ages of 6 and 18 and for familyoriented housing types. We also show that the premium associated with quality charter schools varies with school type and is highest for high schools. The findings contribute to the literature on school quality with policy implications relating to school choice options such as charter schools and vouchers.

The Effect of School Quality on House Prices: Evidence from Shanghai, China

“…𝛸 1𝑖 is a vector of control variables, which captures the characteristics of residential complexes including the building age (𝑌𝑒𝑎𝑟), floor area ratio (𝐹𝐴𝑅), green rate (𝐺𝑟𝑒𝑒𝑛), and management service fee (𝐹𝑒𝑒) of a complex. In line with existing studies [41][42][43][44], this study also controlled for the locational characteristics 𝛸 2𝑖 of the residential complexes. The study also collected information about the characteristics of the selected residential complexes that may affect the housing prices.…”

The Political Economy of Subprime Educational Policy: A Critical Analysis of Charter Schools in Black Communities

“…As charter schools typically provide educational access and opportunities beyond traditional neighborhood boundaries, researchers examine the implications for decoupling the conventional relationship between school and neighborhood. Although there is an established relationship between school quality and housing prices, the literature on how charter school growth shapes these dynamics is mixed as some studies find no relationship between charters and housing prices (Horowitz et al, 2009;Iberman et al, 2015), while others show that when charter quality exceeds traditional public school offerings, charter availability translates into a housing price premium (Beracha & Hardin, 2019). Additionally, scholars argue that unless charter policy is designed to facilitate racial and socioeconomic diversity (Mead & Green, 2012;Orfield & Frankenberg, 2013;Scott & Wells, 2013), charters often contribute to increases in racial isolation within school districts (Baker, 2016;Frankenberg et al, 2010;Miron et al, 2010).…”

Spatial variation of the determinants affecting urban land value in Thiruvananthapuram, India

“…Also, online listing data is free, easy to access and publicly available (Wang et al , 2020). Numerous studies in the literature have produced significant results by using advertisement prices as dependent variable (Bourassa et al , 2016; Beracha and Hardin, 2019). They ably capture the dynamics of land price variation, as shown by various studies.…”