Improving River Forest schools is a wise investment for citizens, one that provides benefits to those with children in our schools, as well as to residents who do not have children enrolled in our public schools.
Here are comments from a few noted economists on this subject:
- “The value of ‘good’ schools is reflected in prices
for owner-occupied houses. The consensus is that the higher quality
public schools attract potential buyers better than the lower quality
schools do.”
- Brian Smith, Department of Economics, East Carolina University - “Our results indicate that individuals pay attention to both
per-pupil expenditures and test scores when deciding where to locate.”
- Thomas A. Downes, Department of Economics, Tufts University - “Like previous work relating test scores to house values, we
find that test scores are capitalized into housing prices.”
- David N. Figlio, Department of Economics, University of Florida - “Of all the local neighborhood amenities that can influence a buyer’s
decision to purchase a home, proximity to good quality schools is one
of the most influential.”
- National Association of Realtors
It makes perfect sense. Good schools attract homebuyers because many
homebuyers want their children to have the best possible chance of getting
a good education. As such, they "bid up" the housing values
in communities that are known to have good schools.
Our property values increase as more people desire to live within our
school district's boundaries. Importantly, even homebuyers without children
and those who plan on enrolling their children in private schools are
attracted to communities with strong schools. They know that as long as
the community maintains high-quality public schools, their property values
will continue to increase.
When a school district fails in its attempt to raise taxes, the quality of its schools wanes, and the community is then less likely to see homebuyers choosing them.
Declines in housing values reduce family net worth and can threathen short-term finances, as well as long-term retirement plans. The table below shows how much home equity factors into American households at various ages and wealth levels:
Interestingly, falling property values hit the elderly hardest because a higher percentage of their net worth is driven by property values. It's no surprise therefore that senior citizens frequently are strong supporters of school referendums. Of course, many of them also have grandchildren in the schools and want to do what's best for future generations.
The bottomline? Even though school referendums are not always popular, they are an excellent way to secure the long-term value of your property. Without good, solid schools, neighborhoods do suffer, and all residents feel the negative consequences.
To keep our property values strong, please vote "YES" for the referendum on March 21, 2006.