But, recent evidence published by Robert Shapiro and Kevin Hassett supports the correlation for charter schools.
In New York City (NYC), school choice increased local property values. The data revealed two trends: 1) as the number of charter schools increased, so did student performance increased on standardized examinations and 2) as graduation rates rose, so did net income and housing demand in those neighborhoods. The facts:
- Within one year's time, the opening of a new charter school led to a 3.7% increase in home prices in the same zip code.
- Graduation rates increased 11.3% from 2006 to 2012, leading to a $37.1B increase in residential housing values.
- The addition of charter schools created more than $22B in housing value increases.
An economics professor at Columbia University, Randall Reback, said future research should add to these findings:
You would expect an even bigger increase from interdistrict choice
because if you have two school districts you have direct competition.
When you expand choice, not only does it increase the house values
in places where people are interested in transferring outside of their
districts, but can also increase the median income of residents. It
can create residential integration as a result.
These research findings aren't surprising. It's called the free market.
Let the discussion begin...
To read the Shapiro and Hassett study, click on the following link:
"The Economic Benefits of New York City's Public School Reforms, 2002-2013."