Many factors appear to correlate with foreclosure numbers in neighborhoods around the United States. Bankruptcy filings, dropping home values and increased mortgage default numbers all go hand in hand with the likelihood of a foreclosure located within a particular area. However, while many of these factors support the fact that foreclosures are high in particular areas, a recent study revealed a competing factor with foreclosures; good schools.
An Inverse Relationship
A business analysis company out of Massachusetts conducted a study to compare the percentage of foreclosures in five metropolitan areas to additional factors. What they found was that foreclosure listings were lower for neighborhoods located in districts with high school rankings. Higher rated school districts had higher home value prices and fewer foreclosure listings.
Not only are foreclosures few and far between in highly ranked school district areas, but if a foreclosure was available in this area they were more difficult to sell and sat unoccupied for much longer than foreclosures listed in lower ranked school districts.
Further, homes located in highly ranked school districts appear to have avoided huge hits from the housing market crisis. Homes in these areas maintained their home values and were less susceptible to value drops resulting from the neighborhood mortgage debts.