REVEALED: The extortionate premiums parents are forking out to buy homes in the best school districts

Parents nationwide are digging deep in their wallets to meet the extortionate premiums necessary to score homes in the best school districts. 

Across the country, homes in the most exclusive districts cost millions more than homes in the greater metro area on average. 

Realtor.com collected data using views per property from out of district home shoppers from May to July 2025 to determine the most popular school districts in each metro.

To focus specifically on school-driven homebuying activity, the online traffic analysis was limited to listings with at least one assigned school rated 8 by GreatSchools.com. 

The data showed that high-quality schools attract families, but come with a steep premium. 

In 27 of the 50 most sought-after districts, median listing prices averaged $1.21 million – 135 percent higher than in surrounding areas. 

‘Our data shows families are making trade-offs – sometimes paying a significant premium for top-rated districts, and other times prioritizing value in areas that still offer strong academics,’ said Danielle Hale, chief economist at Realtor.com.  

This trend was not limited to one state, or even one coast – it is a nationwide pattern.

Parents across the country are forking out massive premiums to make sure their children go to school in the best districts (Pictured: Laguna Beach High School) 

Mountain Brook, Alabama 

In Birmingham, Alabama, the Mountain Brook area is substantially more expensive than the surrounding parts because of the town’s high quality school district, Mountain Brook Schools. 

The district was founded in 1959 and serves around 4,400 students across six schools – four elementary, one junior high and one high school. 

‘Our school system is consistently ranked as the top in Alabama and is considered one of the best in the country. It’s well-funded, and we have strong community support behind it,’ City Manager Sam Gaston told The Daily Mail. 

Home prices in Mountain Brook average at over $1 million, while the typical house in Birmingham as a whole is only $300,000. This disparity represents a 241.5 percent premium for property in the upscale suburban neighborhood. 

‘The real estate market here is very active’, he said, adding that ‘people are willing to pay that premium because of the exceptional quality of life.’ 

Mountain Brook is an affluent, residential community with a highly educated population. At one point, it was ranked the ninth most educated city in the US.

Gaston said that, beyond the schools, the city offers a high quality of life with low crime rates, excellent municipal services, a top-tier public library, and beautiful parks.

‘Mountain Brook is extremely family-oriented. A few years ago, we were named the best city in Alabama to raise children,’ the city manager said. 

‘We’ve invested in things like sidewalk infrastructure. There are 48 miles of sidewalks connecting neighborhoods, schools, churches, and our commercial villages.’ 

In Birmingham, Alabama, the Mountain Brook area (pictured) is far more expensive than the surrounding parts because of the town’s excellent school district

Southlake, Texas 

Carroll Independent School District (CIDS) in the Dallas-Fort Worth-Arlington area of Texas had the highest premium for parents across the US, according to the data. 

The district serves the majority of the city of Southlake and portions of northwest Grapevine, far northern Colleyville and eastern Westlake. 

Homes in the catchment area of CIDS cost $2.2 million on average, while properties in the greater metro area were just $440,000. 

This is a whopping 390.9 percent premium, or around $1.7 million more for a home in the CIDS district compared to the surrounding areas.

According to the CIDS website, the 21-square-mile district consists of 11 schools serving more than 8,100 students and 1,000 employees.

The sought-after school district is regarded as one of the best in Texas, having received ‘A’ ratings by the Texas Education Agency at all 11 campuses.

Carroll Independent School District, which serves the majority of the city of Southlake (pictured), had the highest premiums of all, according to the data

The district consists of 11 schools serving more than 8,100 students and 1,000 employees (Pictured: a Carroll Senior High School graduation ceremony)

Laguna Beach, California 

Laguna Beach Unified School District (LBUSD) turned out to be the most popular school district in the Los Angeles, Long Beach and Anaheim area.

Laguna Beach is best known for its stunning views of the pacific and thriving arts scene, but according to this data is also a hotspot for parents with high-achieving ambitions for their kids.

While the median house price in the greater metro area was $1.2 million, homes within the catchment for LBUSB averaged $5 million. This is a 322 percent premium, or $3.8 million more on average.

LBUSB offers two elementary schools, a middle school and only one high school – Laguna Beach High School.

‘With its “small town” feel, beach and walking trails, and dozens of great parks, children young and old always have a plethora of activities to choose from,’ Laguna Beach real estate broker Cynthia Ayers told the Daily Mail. 

‘Beyond that we have the seasonal Festivals (Art/Dance) and Theaters. There is something for every age.’

Ayers said that what makes the school district so great is their ‘no bully’ policy and low student to teacher ratio. Her own kids went through elementary, middle and high school in LBUSD schools. 

‘All were wonderful,’ she said. ‘My kids are still close friends with all their classmates and continued through college with many of them.’

Pictured: Laguna Beach real estate broker Cynthia Ayers

Laguna Beach (pictured) is best known for its stunning views of the pacific and thriving arts scene, but according to data is also a hotspot for high-achieving parents 

While the median house price in the greater metro area was $1.2 million, homes within the catchment for LBUSB averaged $5 million (Pictured: a mansion in Laguna Beach)

Laguna Beach Unified School District (LBUSD) turned out to be the most popular school district in the Los Angeles, Long Beach and Anaheim area

As for the families relocating to Laguna Beach, Ayers said they are mainly navigating down the coast from Los Angeles and other larger cities to escape the congestion and traffic. 

‘People relocate to Laguna Beach from all over the world – it’s truly a diverse community,’ Ayers said. 

‘Many people move here when their children are young, both for the great schools and all their advantages afforded to young families.’

Ayers said she and her husband made the decision to move almost 30 years ago. ‘I was pregnant with my second child and felt daunted by the waiting lists for preschools in LA and the traffic began to feel ominous.’

Since moving, the Laguna Beach realtor has had no regrets: ‘It’s truly been a great life. I can’t imagine living anywhere else, honestly.’

And even though Laguna Beach is undoubtedly expensive, Ayers insists it is worth the money. 

‘Laguna Beach is expensive because people want to be here! It’s all supply and demand in real estate.’

Tiburon, California

Reed Union School District is another of the most in-demand school districts in the country. 

Sitting in the affluent Tiburon neighborhood in California, the school district has three schools serving students in pre-kindergarten through eighth grade.

Compared to homes in the greater San Francisco, Oakland and Fremont area – which cost around $996,000 on average – homes in Tiburon tend to be over $4 million.

This indicates a steep 304.7 percent premium to live within the RUSD. 

Sitting in the affluent Tiburon neighborhood in California (pictured), Reed Union School District has three schools serving students in pre-kindergarten through eighth grade

Compared to homes in the greater San Francisco, Oakland and Fremont area – which cost around $996,000 on average – homes in Tiburon are over $4 million (Pictured: a mansion in Tiburon) 

The premium to live within Reed Union School District is a steep 304.7 percent (Pictured: a mansion on the waterfront in Tiburon) 

New Hope, Pennsylvania  

The New Hope Solebury School District is another zone sought after by parents. 

Located in New Hope, Pennsylvania – a suburb in Bucks County – the district encompasses one elementary school (with two campuses), one middle school and one high school. 

Home prices in the catchment area average about $1.2 million, while houses in the surrounding areas – including Philadelphia, Camden and Wilmington – average just under $400,000.

That makes the average home 223.9 percent more expensive, or about $864,000 on average.