The Impact Of Educational Resources On Housing Prices

Since ancient times, the housing can make us live and work in peace and contentment. However, the real estate price gap is growing since the implementation of the reform of the housing system in 1998.The similar trend can be seen in the same city.As we know, a very important aspect is that the regional education resources are obvious difference. On the one hand, with the improvement of people’s living standards, the parents do their best to let their children to receive a comparatively excellent education. Thisresulted in the price of the school district housing, the scarcity of high quality educational resources,grow fast than others.This paper is based on the basic information of public primary and middle school,in West Lake District of Hangzhou City, and the house price data of 2007-2015 years. The relationship between education resources and residential housing prices is studied by using the characteristic price model and panel model.Research shows that the residential housing prices have a positive correlation with the ranking of primary school and the distance from school. That is to say the better the primary school, the higher the price of residential housing.Butthe conclusion is not significant for junior middle school. The school district housing prices compared to ordinary schools in the school district housing are higher when the other conditions are same.Famous schools can bring more real estate premium to the school district, compared to ordinary primary school.The impact on the price for the district around the existence of the university is very significant.Therefore, it is advantageous for the compulsory education phase equilibrium development through setting up the University City and continuing to push forward the famous school collectivization strategy in different regions of the city.