Luxury Homebuyers in New York Metro Area Face Subpar Public School Ratings

For buyers investing $2.62 million or more in the New York-Newark-Jersey City metro area, the promise of luxurious living does not always extend to the quality of their children's public education. A recent analysis by Realtor.com reveals that this region ranks ninth nationally for the most expensive luxury housing markets, with the top 10% of listings starting at $2.62 million. However, the public elementary schools assigned to these high-value homes average a GreatSchools rating of 6.7 out of 10, placing the metro area among the bottom 10 of 43 markets studied.

The findings indicate a disconnect between high-end real estate prices and the academic standing of assigned public schools. GreatSchools ratings are determined by comparing schools within the same state, reflecting state test results and academic progress relative to their state peers. The New York metro area's average score encompasses communities in both New York and New Jersey, and is not a comprehensive evaluation of all New York City public schools.

Realtor.com's methodology focused on markets with at least 500 million-dollar listings over the past year, defining luxury homes as those in the top 10% of local pricing in September. The average GreatSchools rating for public elementary schools assigned to each luxury property was calculated, and these scores were then averaged across each market, excluding properties without a school rating.

In contrast to the New York metro area, other markets demonstrated a stronger correlation between luxury housing and school quality. Naples-Marco Island, Florida, led the rankings with an average school rating of 9.3 for its luxury properties, which started at $3.69 million. Crestview-Fort Walton Beach-Destin, Florida, followed with a 9.1 average rating and a luxury threshold of $2.87 million. Bridgeport-Stamford-Danbury, Connecticut, secured the third spot for school ratings at 8.5, with luxury homes beginning around $3.6 million.

Interestingly, some areas with significantly lower luxury price points also featured highly-rated schools. Jacksonville, Florida, ranked 11th with an average school rating of 7.8, despite a luxury entry price of $900,388. San Antonio-New Braunfels, Texas, placed 15th with a 7.4 average rating and a luxury threshold of $780,487.

"Some really affordable areas really popped out here in the top 15," noted a representative from the study. "That was really intriguing to me." These findings suggest that robust public school ratings can coexist with more accessible luxury housing markets.

At the lower end of the school rating spectrum, Kahului-Wailuku, Hawaii, had the second-highest luxury threshold at $3.79 million but the lowest average school rating of 5.0. Urban Honolulu followed with a 5.7 average.

The analysis specifically excluded private schools, school-choice programs, and lottery-based admissions, focusing solely on assigned public elementary schools. Real estate professionals note that while school ratings are a factor for buyers, other considerations such as location, proximity to work, and family connections can often hold greater importance. The definition of a "great school" remains subjective, with online ratings typically serving as a starting point rather than a final determinant for purchasing decisions.

The study also touched upon market trends, noting that strong school ratings did not necessarily insulate luxury housing prices from declines. Bridgeport-Stamford-Danbury, despite its high school rating, experienced a 15.6% drop in its luxury threshold year-over-year. New York's luxury threshold saw an 11.3% annual decrease. Nationally, the luxury entry point fell 3.6% to $1.199 million, continuing a trend of year-over-year declines and remaining 14.1% below its peak in May 2023. It is important to note that these figures reflect listing prices, not final sale prices, and, like school ratings, are one component of a complex home-buying decision.