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Traditional calendar schools increase property values by nearly two percent in Wake County, North Carolina

Date:
November 16, 2015
Source:
RTI International
Summary:
Prices for homes assigned to traditional calendars were up to 2 percent higher than similar homes that switched to multi-track year round calendars, a new analysis of more than 50,000 residential real estate transactions shows.
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An RTI International and Elon University analysis of more than 50,000 residential real estate transactions shows that prices for homes assigned to traditional calendars were up to 2 percent higher than similar homes that switched to multi-track year round calendars.

The study is available online and appears in print in the December edition of Economics of Education Review.

"Given the media attention and strong public opinions on the school calendar change, it is evident that Wake parents have strong preferences regarding school calendars," said Brooks Depro, Ph.D., senior economist at RTI. "The puzzle we tried to solve was whether a traditional calendar "price premium" emerged immediately after the mandatory calendar conversions. To answer the question, our study design compares and contrasts actual home sales that took place before and after the conversion."

In Wake County, multi-track year-round schools increased significantly in the past decade due to a high-level of growth in the school district. In multi-track year-round calendar schools, schools are able to support a larger student population by rotating breaks for students in different tracks.

Increasing existing school capacity is often perceived as a low cost way to meet student population growth. The largest increase in Wake County occurred in 2007 when the school system mandated 22 traditional calendar schools to switch to a multi-track year-round schedule.

"If year-round schools are seen as an undesirable attribute and home prices fall, some of the potential cost savings associated with the year-round school calendar may be offset by a lowered tax revenue base," said Katy Rouse, assistant professor of economics at Elon University and co-author of the study. "For this study, we wanted to move beyond observing how average test scores among schools impact the housing market and explore whether other school attributes are capitalized into home prices."


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Materials provided by RTI International. Note: Content may be edited for style and length.


Journal Reference:

  1. Brooks Depro, Kathryn Rouse. The effect of multi-track year-round academic calendars on property values: Evidence from district imposed school calendar conversions. Economics of Education Review, 2015; 49: 157 DOI: 10.1016/j.econedurev.2015.09.006

Cite This Page:

RTI International. "Traditional calendar schools increase property values by nearly two percent in Wake County, North Carolina." ScienceDaily. ScienceDaily, 16 November 2015. <www.sciencedaily.com/releases/2015/11/151116112711.htm>.
RTI International. (2015, November 16). Traditional calendar schools increase property values by nearly two percent in Wake County, North Carolina. ScienceDaily. Retrieved May 23, 2017 from www.sciencedaily.com/releases/2015/11/151116112711.htm
RTI International. "Traditional calendar schools increase property values by nearly two percent in Wake County, North Carolina." ScienceDaily. www.sciencedaily.com/releases/2015/11/151116112711.htm (accessed May 23, 2017).

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