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65% of good schools in unaffordable neighborhoods

IRVINE, Calif. – Nov. 19, 2015 – RealtyTrac recently analyzed school test scores for nearly 27,000 elementary schools in more than 7,200 U.S. zip codes and compared it to local home price affordability by zip code.
It found that of 1,823 zip codes with at least one good school, 65 percent (1,192) were unaffordable for average wage earners (meaning it would cost more than one-third of their income to buy a median-priced home).
The median sales price in 2015 for homes in zips with good schools was $411,573 on average – 95 percent higher than the median home sales price in zip codes without any good schools ($210,662).
In some cases, a metro area such as Miami has both most-affordable and least-affordable zip codes for homes near good schools.
“Over the past decade there has been a focus on improving the South Florida public education system and we are seeing great results,” says Mike Pappas, CEO and president of the Keyes Company.”Our overall median price for South Florida real estate is 20 to 30 percent lower than other major U.S. cities. This combination gives South Florida homeowners many good options to find good schools in affordable neighborhoods.”
Metro areas with the most unaffordable zip codes with good schools were Los Angeles (183), New York (158), San Francisco (77), Chicago (58), San Diego (49), Riverside-San Bernardino, California (39), Seattle (35), Miami (33), Denver (30), Sacramento, California (30) and San Jose (30).
“Neighborhoods with the ideal combination of good schools and relatively affordable home prices are very competitive for buyers,” says Lydia Creasey, associate broker with RE/MAX Alliance, covering the Denver market. “At the very least, buyers in these markets need to be pro-active and act quickly as soon as a new home hits the market.”
Metro areas with the most affordable zip codes with good schools were Chicago (172), Detroit (45), Phoenix (22), Miami (20), Charlotte (17), St. Louis (16), Tampa (15), Milwaukee (14) and Rochester, New York (13), followed by six metro areas with 10 apiece: Albany, New York; Nashville; Buffalo, New York; Rockford, Illinois; Grand Rapids, Michigan; and Kansas City.
Home prices in 2015 increased at the same annual pace in zip codes with at least one good school as in zip codes with no good schools. Median home prices increased 7 percent on average from 2014 to 2015 across the 1,823 zip codes with good schools and also increased 7 percent on average during the same time period in the 5,424 zip codes without a good school.
RealtyTrac has a heat map posted on its website listing a city-by-city look at good school districts compared to local housing values.
© 2015 Florida Realtors®  
Source: Florida Realtors Feed

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