Real estate values,school quality,and the pattern of urban development in Charlotte,North Carolina

This study presents estimates of a model that includes the racial composition and academic quality of public schools among the determinants of housing prices. Results suggest that academic quality is a more important factor in the determination of housing values than the racial ratio of pupils in area schools. Drawing on estimates of the model, a school preference index (SPI) is developed. The SPI is found to be positively correlated to the level of the academic achievement and negatively related to the level of nonwhite school enrollment. The SPI also is shown to be positively correlated to the level of new residential construction.