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RealtyTrac: 65% of ZIP codes with good schools are unaffordable

Median home price significantly higher in ZIP codes with top-notch education
  • Nearly two thirds (65 percent) of ZIP codes with good schools are unaffordable for average wage-earners.
  • In ZIP codes with at least one good school, the median home price is nearly double the median home price in ZIP codes with no good schools.

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RealtyTrac released a report today showing that nearly two thirds (65 percent) of ZIP codes with good elementary schools are unaffordable for homebuyers on the average wage. Average wage-earners would need to spend more than one-third of their income to buy a median-priced home. The company based its school quality analysis on each state's 2014 Department of Education test-score records, then looked at 1,823 ZIP codes that had at least one "good" school -- 1,192 were unaffordable to average wage-earners. In ZIP codes with at least one good school, meanwhile, the median home price was nearly double the median home price in ZIP codes with no good schools. The median sales price in 2015 for homes in ZIP with good schools was $411,573 -- 95 percent higher than the median home sales price in ZIP codes without any good schools ($210,662). Cities including Los Angeles (184), New York (158), San Francisco (77), Chicago (58) and San Diego (49) boasted the most unaffo...