By Penelope Graham, Zoocasa
Special to the Financial Independence Hub
Buying real estate is a stressful enough endeavour, but throwing kids into the mix adds a whole new layer of complexity to the house hunt.
While most buyers have a lengthy wish list of must-haves, usually centred around size, access to amenities and location, living close to a highly-rated school is a top consideration for 39 per cent of Canadians contemplating their next real estate purchase.
And you can certainly expect to pay more to live within a coveted catchment area, even in regions with softer conditions than the red-hot Vancouver and Toronto real estate markets.
“School districts have become a large factor that buyers consider when searching for a home. As a result, homes in better school districts tend to have greater demand and a larger buying pool,” says Chantel Crisp, broker of record at Zoocasa Realty. “Parents are motivated to get their children into great school districts even during economic downturns, so neighbourhoods with better school ratings are sought after in both times of economic growth and decline.”
Higher prices for higher learning
Just how much more do homes fetch in top school neighbourhoods? Buyers can expect to pay a whopping premium of over $800,000 in some cases, according to data collected via Zoocasa’s school search function. The fact that it’s not always clear whether a home lies within a school’s boundary can be a point of frustration for buyers trying to harmonize their home buying ambitions with their academic needs says Zoocasa CEO Lauren Haw.
“Homes across the street from one another may be in different catchment areas. Understanding where your home is within a certain boundary can help with long-term transition planning and reduce unnecessary moves,” she says. “Not to mention wealthy accumulation – school rankings are highly correlated to real estate prices.”
To get a better idea of how much living near a top-rated school will impact buyer budgets, check out the infographic below, based on the sale prices of homes with more than three bedrooms, and top EQAO-rated elementary schools in each of Toronto’s six boroughs. Continue Reading…