The Relationship between Schools' Characteristics and Housing Costs in Saint Petersburg

The thesis paper is devoted to the study of the relationship between the characteristics of secondary education institutions and the cost of housing in St. Petersburg. Based on information from the city's real estate market for residential properties, hedonic pricing modeling was conducted, in which the price per square meter of housing is represented by a range of various characteristics. The main characteristics reflecting education quality were average standardized tests’ scores and the type of school (gymnasium, lyceum, regular school). For further comparison, two data sets were formed, where the correlation of schools and apartment addresses was carried out according to the principle of proximity within a certain radius and on the basis of official assignment. The study revealed that the presence of a high-quality educational institution in the vicinity of a property significantly enhances its value. If the school is officially assigned to the address, an increase in the average standardized exam score by 10 points leads to an increase in the price per square meter of up to 5%. In the case of nearby schools, this impact drops to 3%.However, the type of school plays a significant role, especially if a buyer intends to purchase housing in a new building. The obtained results contribute to a greater understanding of how residents perceive the quality of education. In addition, it provides justification for city authorities' and municipalities' investments in improving education quality to promote urban development.