MB Schools Drive Real Estate

Today's news that MB's Robinson Elementary has won a national Blue Ribbon award is great in itself. What a compliment to the teachers, administration and, of course, the students and parents who support them!

But I had another thought, too: This is going to bolster local real estate values even more.

I have represented several buyers in just the past couple of years who were families in the same situation: Coming from other parts of LA (or out of area completely), with young children nearing school age, and facing facts. They could not trust their local school districts with their kids. They began looking for nice communities where public school was the default option. And they chose Manhattan Beach.

Sure, you pay more to get into Manhattan Beach. But you don't pay for private school. And you get a tax break on the mortgage interest that you wouldn't get on private school tuition.

As buyers of means who prioritize education choose MB for the schools, you see the creation of a good cycle. A "virtuous cycle," if you will. (That's the term I used in this post in April.) Good schools attract families who care about schools. School quality improves further. More people choose MB for the schools. Repeat.

Of all of the changes in Manhattan Beach, this may be the trend that does the most to underpin long-term values.

We're in the midst of another upcycle, and some prices are getting beyond even the peaks set in 2006-07. People wonder if these prices are sustainable.

What's clear is that people will always pay more to get the best for their kids.