How School Districts Impact Home Values in Denver
Planting roots in a neighborhood with a high-ranking school system is top of mind for many parents and parents-to-be. But even if you have no plans to have children in the future, considering school districts when searching for your next property is a smart move. No, not because you might find yourself back in the classroom someday (à la Billy Madison), but because it could have a big impact on your home’s value.
Here, we dive into how the quality of nearby schools can impact your home’s worth and where to find the top schools in the Denver area.
Why School Reputation Matters
Before we dive into the significance of school ratings and reputation in your area, let’s go back to the fundamental drivers of home prices: supply and demand. When the desire to live in a neighborhood outweighs the number of houses available, prices go up. If demand wanes and there are more homes than people to occupy them, prices go down.
Desire or demand for living in a particular neighborhood is impacted by several factors—from crime rates to convenience to jobs to recreation to, yes, school districts. In fact, according to the 2024 Home Buyers and Sellers Generational Trends Report by the National Association of Realtors (NAR), 37% of buyers between the ages of 34–43 named “quality of the school district” as a top factor when choosing their neighborhood—a stat that gains even more significance in Denver when you consider that nearly 40% of the local population falls within that age range.
When searching for your next home, it’s good practice to keep these school considerations in mind:
School Performance and Reputation: School performance metrics, such as test scores, graduation rates, and polls from students and parents can impact its overall reputation and rating. Families looking for good educational opportunities for their children are willing to pay a premium to live in areas served by top-rated schools, and that demand can drive up property prices. To see how school districts all over Colorado stack up, try out the SchoolView tool on the Colorado Department of Education’s website.
School District Boundaries: Homes in districts with well-regarded schools often have higher values compared to those in districts with less favorable reputations. NAR found that home prices in high-performing suburban school districts were 49% higher than the national median, and they also uncovered that homes in such high-performing districts were 77% more expensive than homes in low-ranked districts. But even if a home is relatively close to a top-performing school, it doesn’t always mean it's within that school’s district, so do your research ahead of time.
Proximity to a High-Performing School: Homes within walking distance of top-rated schools are often priced higher than homes on the outskirts of a district. Parents often prioritize living close to good schools for the convenience of cutting down on commute time and direct access to school activities and extracurriculars.
Future Prospects: Don’t forget—real estate market conditions are always shifting. Potential changes in school district quality can happen over time and affect your property value. If a school district is investing in improvements or is anticipated to become more competitive, this can positively influence property values. Conversely, if a district is experiencing declines, it may negatively impact property values. Keeping a finger on the pulse of school district plans and performance can help you determine if it’s the right time to buy, sell, or stay put.
Local Market Trends: The overall real estate market trends in Denver also play a role. In a hot market, the impact of school district quality might be amplified, as buyers are more likely to compete for homes in desirable school districts.
Denver’s Top School Districts
According to Niche, a website that gathers public data sets and reviews to rank the top schools, these are some of the Denver area’s top school districts in 2024:
Cherry Creek School District: Located just outside of Denver, this district is often cited for its high academic standards and comprehensive educational programs. Cherry Creek schools are known for strong performance and have a reputation for excellence in both academics and extracurricular activities.
Littleton Public Schools: This district, serving the Littleton area, is often recognized for its high academic standards and supportive community environment. Schools in this district frequently receive high ratings.
Douglas County School District: This district, located south of Denver, is known for its commitment to high academic standards and student achievement. It frequently receives praise for its educational programs and overall school performance.
Jeffco Public Schools: Serving the western suburbs of Denver, Jefferson County’s schools are frequently noted for their strong academic performance and community involvement. The district offers a range of high-quality programs and services for students.
Denver Public Schools (DPS): The largest district in Denver, DPS encompasses many neighborhoods and offers a range of options, including highly-rated schools. Some schools within DPS are consistently recognized for their academic excellence and innovative programs.
Tip: When considering school districts, it's important to look at specific schools within the district, as individual school performance can vary. As mentioned before, rankings and perceptions can change over time, so it's a good idea to consult recent reviews, school performance reports, and local resources for the most up-to-date information.
Perfecting your home-buying strategy? Iron Works Realty can help. As Denver-based real estate experts, we leverage two decades of experience representing buyers and sellers of residential and commercial real estate in the Denver Metro Area and across the state. We have extensive knowledge of the local market and can help you find your dream property in the best neighborhood for your unique lifestyle and situation. Contact us today to set up a consultation.
