The effect of school quality on housing prices: evidence from Moscow

Abstract

This paper considers various factors affecting housing prices in Moscow with special attention to societal conditions — particularly the quality of education provided by schools within the neighborhood. Today in Russia, children are enrolled in elementary school on the principle of territorial priority, which means that children living within the area of a given school are entitled to be enrolled there. Do parents take into consideration the quality of school education when purchasing a property? Are they prepared to pay extra for an access to better education? Does this extra amount depend on housing prices? These are the main questions of this study. To answer them, the paper analyses the best affordable school rating’s impact on accommodation prices. Not only parents, but also the real estate market would be interested in the results. Moreover, this research contributes to the understanding of migration patterns within the city. It helps determine the factors affecting someone’s choice of property. The findings will provide a more accurate assessment of decision-making in urban planning and education.