Steep Property Taxes vs. Private Tuition: Which Option Costs Homebuyers More?

For parents with school-age kids, choosing where to buy a home can come with a very expensive question: Do you pay more for a house in a highly rated public school district, or buy somewhere cheaper and put the difference toward private school?At first glance, private school may seem like the pricier option. Tuition is money you spend and never see again, while a more expensive home gives you an asset that can build equity and appreciate over time.But the math isn't quite that simple. Higher property taxes, a bigger down payment, mortgage interest, and the opportunity cost of tying up more money in a house all count, too.So, which option actually leaves a family better off? We ran the numbers in the Chicago area over 13 years. In our example, buying in the pricier public-school district came out ahead (but not for the reason you might think).A $892,250 house or a $30,000-a-year private school?Consider two hypothetical families with one child starting kindergarten.One buys a roughly $892,250 home in Wilmette, IL, where families have access to highly regarded public schools, including New Trier Township High School. The other buys a roughly $383,000 home in Chicago and sends their ch...