Historically, school districts have been a pretty darn important factor in local real estate decisions. And I think they will continue to be important for several years to come.
But, I also believe school district is becoming increasingly less significant in Colorado Springs because of the rise of school choice and an increasing number of highly-rated charter academies.
How school district impacts Colorado Springs home values
Homebuyers typically ask to look at houses in one or two school districts they’ve heard have good reputations – as long as they can afford the homes there.
It definitely comes up and plays into real estate decisions. I’ve even worked with young first-time buyers who are looking ahead to when they will have a family, and they’re concerned with school district.
It makes sense in the current Colorado Springs housing market for all types of buyers, even those who never plan to have children in school, to think about school district when looking for a home, because it has an impact on real estate values.
Home values in Colorado Springs seem to be inextricably linked to school district. Houses in coveted Cheyenne Mountain School District 12, for example, have an average sales price of $416,000. That’s 190% more than the average sales price of $143,416 in Harrison School District 2.
The really crazy thing about that juxtaposition is that kids in District 12 and District 2 could practically be neighbors in some parts of the districts.
The importance of school district in Colorado Springs could be fading
While buyers still ask about school districts, and real estate values are still linked with school reputations, I can’t help but believe that’s about to change.
I’m in my early 30s and know several people in town with school-age children. Only about a third of them send their kids to neighborhood schools. Those who choose alternatives don’t live in bad areas. In fact, most of the people I know who drive their children to charter academies live in the most popular school districts.
That also makes sense when you think about it. People who value education enough to base real estate decisions on the quality of the schools will also probably shop the city for the best school options.
I’m even helping one woman look for a home closer to her child’s charter school, which is in a district with an inferior reputation to the one where she currently lives.
If school districts matter to Colorado Springs homebuyers less in the future, we’ll just be keeping up with national trends. Check out this Motley Fool article I wrote about the fading importance of schools on real estate values.
Central real estate making a comeback
There are a couple more reasons school districts could matter to homebuyers less in the future. For one, a lot of the real estate in the central part of the city is pretty desirable these days.
It’s also becoming available again for the first time in decades as the Baby Boomers move out and make room for new young families with children.
Families moving back into Colorado Springs School District 11, which includes more homes than all the others combined, could rejuvenate it. District 11 has never had a bad reputation and, in fact has many award-winning schools, but is not typically one of the top two buyers ask about.
Families demand good schools where they live, especially when they’re actively choosing their communities. If you’d like to know more about D11 and real estate values, check out this article I wrote for the Colorado Springs Business Journal.
Talk to me
And if you’d like more data or to take a peak at any homes in any Colorado Springs school district, I’d love to show you around. Give me a call or come by and see me at Gold Hill Mesa Sunday, Monday or Tuesday afternoons.
Colorado Springs average home sales price by school district
Over the last 180 days as of June 7
|School District||Average Sales Price|
|Harrison School District 2||$143,416|
|Colorado Springs School District 11||$198,412|
|Cheyenne Mountain School District 12||$416,000|
|Manitou Springs School District 14||$286,697|
|Academy District 20||$322,785|
|Falcon School District 49||$230,816|