Schools and Their Impact on Property Values

As a Realtor, it is my job to know how good a school district is—especially when my clients have kids. In California, schools are judged by the Academic Performance Index, also known as API SCORES (link to my site). This index is basically an accountability system that measures the performance of grades two through twelve in the areas of English-Language Arts, Mathematics and Science. The emphasis for these areas change as children progress to higher grades as seen in the table below. API Ranks are provided in the BASE API REPORTS. A school’s statewide rank compares its API scores.

Now that I have given you this information, I’m still confused how the API number is generated. As a result of my ignorance I initially had to ask around. Finally I made life easy on myself and took a look at API scores like this. As a parent, I think you want a minimum API score of about 800. A score of 850 is a really good school. A score of 900 or above is a excellent school. Through my research I have also discovered that elementary schools generally score high. You begin to see scores lower in middle school and go even lower in high school. The high schools that maintain high scores equivalent to their elementary counterparts are generally some of the best school districts.

In the Greater Bay Area, I have found a correlation between property values and schools. The higher the school ranking, the higher the cost of owning a home in that district. I also find that the growth in home values runs at a higher rate when in a more desirable school district. Finally, I have also seen homes in the desirable school districts maintain their value during market corrections like our last or current situation. So even if you don’t have children, it is almost always (if not always) good to be in a desirable school district.

If you would like more information about schools you can go here.