Will Private Primary Schools Inhibit The Housing Premium In School Districts?

Since the implementation of housing commercialization reform more than 20 years ago,our real estate market has developed rapidly.As people pay more and more attention to education,the education quality of public schools matching housing has become an important determinant for home buyers when making decisions.Due to the scarcity of high-quality education resources,the high price of high-quality school district housing has not only attracted widespread attention from the public opinion,but also caused extensive thinking of researchers.While developing public education,the government’s rectification and regulation of private education have also broken the public stereotype of private schools as "chaotic".With the continuous development of private schools,they play a more and more important role in the education system.Many parents are not limited to traditional elite public schools when choosing schools for their children.The growing influence of private schools on public schools will have a profound impact on parents’ choice of schools,and thus on home buyers’ demand for housing.The substitution of private schools for public schools has an important impact on the distribution pattern of educational resources and the real estate market.Therefore,it is of certain theoretical and practical significance to study the effect of the existence of private schools on the housing price of school district real estate market.This paper uses micro-data of second-hand house transaction information from September 2018 to August 2020,takes Beijing as the research object,and selects the housing source data of four administrative districts in Beijing as the research sample.Based on Traditional Hedonic Price Model,a variable describing the situation of private primary schools in a certain range around the housing source is constructed,which is included in the model as a moderating variable,so as to empirically analyze the effect of private schools on the housing premium in school districts to investigate whether the existence of private schools will have an impact on the real estate market,and whether the premium of housing in the part of the school district with private schools nearby is suppressed by the transfer of some students to private schools.In order to ensure the validity and reliability of the empirical analysis results,this paper simultaneously uses the replacement of moderating variables and propensity score matching to carry out group regression for robustness test.In addition,based on the baseline model analysis,this paper further studies the heterogeneity effect of private schools on the housing premium of public school districts from different dimensions.According to the empirical analysis results,the following conclusions can be drawn:First,the degree of housing premium is closely related to whether there are private primary schools in the neighborhood.Private schools within 2 kilometers of housing have a significant inhibitory effect on the size of housing premium in school districts.A private school within 2 km will generate a smaller premium than a house without a private school within 2 km.Second,the higher the total score of private schools within 2 kilometers of housing,the greater the impact of private schools on public schools,the smaller the school district housing premium,that is,the size of school district housing premium is negatively correlated with the quantity and quality of private schools.It can be seen that if there are high-quality private schools within 2 kilometers of the housing source,or a large number of private schools,it will have a more obvious inhibitory effect on the housing premium in the school district.Third,the moderating effect of private schools on the housing premium size of school districts is different for different districts,different housing ages,and different quality of public schools.First of all,for Haidian District and Xicheng district with sufficient high-quality education resources,private schools can significantly reduce the housing premium in school districts.However,in Shijingshan District and Chaoyang District,where high-quality education resources are scarce,the combined supply of public and private schools still cannot meet the demand for high-quality education resources.Therefore,the existence of private schools does not inhibit the housing premium in school districts.Second,the effect of private education on school district housing premium is mainly reflected in those older homes.Private schools offer a new option for parents,eliminating the need for buyers to pay a price that does not match the characteristics of the house.Third,parents’ comparisons and choices of schools are often made between good public schools and private ones.Therefore,the moderating effect of private elementary schools on the housing premium of school districts is only reflected in the housing source of the corresponding schools which are relatively high quality schools.Those ordinary elementary schools whose quality is below the average level are usually affected by private elementary schools to a limited extent.To sum up,the development of private schools can not only promote the development of education,but also play a role in adjusting the housing price of school districts to a certain extent,which is beneficial to improve the two major aspects of education and housing people’s livelihood.Promoting the regulation of private education and encouraging the establishment of new private schools with good teaching quality should be effectively implemented along with other policies to help improve the people’s livelihood in education and housing.Although the booming development of private schools has provided a new opportunity for the people’s livelihood problems caused by high housing prices in school districts,it can also be seen that improving the supply of high-quality educational resources in various regions is the fundamental solution to the housing problems in school districts.The possible innovations in this paper are as follows:First,this paper considers both public schools and private schools when studying the influence of education factors on housing prices,which is rare in previous studies.Based on the traditional characteristic price model,this paper includes the variables that describe the relevant situation of private schools into the model,focusing on whether public schools affected by private schools to different degrees show significant differences in the housing premium of their counterpart school districts.Second,in order to enhance the reliability of the regression results of the benchmark model,this paper uses a variety of methods to test the robustness from different perspectives.