What happens to property values when a school closes?

January 30th, 2026

What This Means:

As we outlined in our recent analysis, the open enrollment system the House will vote on next week will likely strain the budgets of some schools and districts, particularly those that are already struggling to meet students’ needs. With this downward pressure, we’re likely to see some schools close and consolidate. Which begs the question: what does it mean for a community when a school closes? Here, we provide a quick overview of some of the available research on this question:

  • Vermont studied this question recently. In a 2024 report, the Vermont Legislative Research Service provided an overview of existing research and highlighted several case studies from other states. The report looked at implications beyond home values, but relevant findings included:

    • In rural areas with schools, property values are higher and there is more business activity than in rural areas without schools.

    • In upstate New York, school consolidation had a short-term negative impact on home values, but the effect reversed after 2.5 years, and within 5 years home values had returned to the level they were at before the consolidation.

  • A 2017 study on a sudden school closure in Iowa found that the school added 6.8% to the value of houses in its attendance zone; once it closed, that value was lost.

  • In Greenville, South Carolina, researchers found that proximity to a school had a positive affect on property values; there was a corresponding negative impact on the values of homes further than average from schools.

  • In a 2021 study, Michigan State researchers found that school closure resulted in a 13% decrease in residential property value. 

Of course, there are effects beyond home values. In that same Michigan state report, researchers write: “Residents were clear that their neighborhood schools played an important role in the community, beyond their formal educational responsibility; the schools acted as social infrastructure where neighbors could meet and build community. When the schools were closed, their roles in their communities were diminished.”

Likewise, the Vermont synthesis highlights research on the effects of school closures on community autonomy and well-being. An Urban Institute report details the effects of school closures on rural communities: “The impact is felt more quickly in rural areas,” said Tequilla Banks, an executive vice president with TNTP who grew up in Joiner and has worked in nearby districts. “There aren’t other wraparound services, right? There aren’t other venues. Even extracurricular activities—it’s harder to get kids to those if the school isn’t right there.”

With open enrollment or not, many districts are going to face tough choices as New Hampshire’s school-aged population declines. But the research shows that these decisions should be made thoughtfully with engagement from the affected community, not as a state mandate with little consideration of each community’s context. Open enrollment will force many communities to grapple with these issues sooner than expected, and it could come at the expense of everyone with ties to the town.

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