The housing price premium associated with charter schools

The existing literature documents a clear relation between public school quality and a residential real estate price premium. The literature on whether charter school availability and quality are associated with a price premium, however, is surprisingly thin. After controlling for public school quality, we provide evidence that residential real estate price premiums are associated with charter school availability and quality. The price premium is smaller than that of quality public schools, but is economically meaningful when the quality of charter schools exceeds the quality of public schools. The price premium associated with charter schools is more prominent in areas where a large percentage of the population is between the ages of 6 and 18 and for family-oriented housing types. We also show that the premium associated with quality charter schools varies with school type and is highest for high schools. The findings contribute to the literature on school quality with policy implications relating to school choice options such as charter schools and vouchers.