Good school districts have been deemed too costly for average income earners, in a new study released on Thursday, November 19. Research was carried out by RealtyTac, an Irvine, California-based company which provides real estate data, while also serving as an online marketplace for foreclosed properties.
An analysis was conducted across 1,823 zip codes in the United States, which were considered to have at least one “good” elementary school, where students’ academic performance was higher than the average.
The most disturbing fact revealed by the study was that approximately two thirds of the zip codes where tuition is deemed to be the most effective and admirable have incredibly high house prices, which residents of average income are often unable to cover.
The average price tag for a house located in an area with easy access to top schools is at around $411,573, which is approximately 95% higher than the median asking price of $210,662, corresponding to residences positioned in districts without this type of benefits.
In fact, in 1,192 of the places which have high-ranking schools, monthly mortgage rates amount to more than a third of the average salary of the residents.
Overall, it was determined that most of the zip codes where proximity to top-rated rated academic institutions is achieved by paying huge amounts of money are located in the state of California.
School districts from the Golden State represent most of the top 16 high-priced areas where parents decide to move so that their kids can get the best education that money can buy. 183 zip codes with excellent schools but exorbitant house prices have been identified in Los Angeles, and 77 in San Francisco.
Similarly cost-prohibitive is New York, with 158 overly costly school districts, while affordable districts offering good tuition can be found in Phoenix, Charlotte, Miami and Detroit.
According to experts, the most expensive school district is Atherton, California, 94027. Having a residence in the vicinity of the much-praised Encinal Elementary School costs around $6 million, which corresponds to monthly mortgage payments of around $37,000. This is approximately 412% higher than the average wage recorded in the area, which stands at just $8,953.
The second most costly school district is Beverly Hills, 90210, where average house payments reach around $20,000 on a monthly basis, surpassing average salaries encountered in that Los Angeles neighborhood by around 405% .
Completing the top 5 when it comes to providing good education which no one in the district can actually afford are Santa Barbara, 93108; Santa Monica, 90402; and lastly, Rancho Sante Fe, 92067.
On the other hand, there are still some good school districts where families can actually afford to buy a house, without having to live on a shoestring budget.
Apparently, the most convenient is Harvey, Illinois, 60426, where house prices are just around $21,000, which means that mortgage payments amount to as little as $128 per month.
When contrasting this sum against the median monthly age reported in the area, which is of $5,547, it seems like living in this district would be quite advantageous, especially since children can attend the meritorious Whittier Elementary School.
On the other hand, this city located south of Chicago is riddled with corrupt officials, and also has a high rate of unresolved violent crimes.
Other zip codes where elementary schoolchildren get above average test scores, and rents are affordable enough are Chicago, Illinois 60621 and 60628; Detroit, Michigan, 48235; and Louisville, Kentucky, 40211 (where Brandeis Elementary is located).
In these areas which boast high performing schools, house payments are usually between $134 and $220, while monthly wages are more than 20 times higher, between $4,400 and $5,500.
Given these findings, real estate estates recommend that families should carefully considering all schooling options before relocating, so that in their quest for excellent tuition they don’t lose sight of the financial implications of their house buying decisions.
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