Affluent Texas suburbs closing schools as district says families priced out by housing costs

An upscale Dallas suburb is shuttering three of its elementary schools as families reportedly are getting priced out of its housing market – and the trend is happening in neighboring towns.

McKinney, an outer-ring suburb that’s more than quadrupled its population since 2000 to 235,000 residents, is closing schools to save money amid declining enrollment.

“Existing single-family homes in MISD’s boundaries are priced beyond the reach of most families with young school-aged children,” the district said on a web page about the closures. “Young families are being attracted to new homes in new developments at more affordable prices.

“Unlike newer developments, many existing neighborhoods in MISD are experiencing a lack of turnover or a minimal influx of new families with young children to replace those aging out of school. Without active regeneration or new housing stock, these areas become less viable for sustaining elementary school enrollment.” 

 The district, which serves about 23,800 students – about 3% fewer than its peak in 2017 – trimmed its operating deficit from $22 million to $1.7 million, but is making further cuts. 

The school consolidations, which are taking place in the southern part of town, will save the district about $3 million annually. There are 9,500 seats for 6,000 students in the 13 elementary schools in the city’s southern portion. 

Parents expressed concern the schools being closed include the district’s special-needs program, with one parent saying her family chose their home to be near a particular school, The Dallas Morning News reported. 

The district’s superintendent for human resources said all displaced staff members will be guaranteed jobs within the district, yet the district also said it expects the $3 million in savings to come through “reductions in labor costs,” including “positions such as principals, assistant principals, office staff, custodians, and cafeteria workers,” since salary and benefits make up the bulk of the district’s costs. 

McKinney school board President Amy Dankel blamed school choice for the budget gap that led to the district closing the schools, though Texas’ program hasn’t even launched yet. 

Some blame the state’s public school funding model, which saw its first increase in per-student funding since 2019 this year – the same session in which lawmakers approved a $1 billion school choice program that will debut next school year. 

McKinney had built more schools expecting enrollment to keep growing, the district said, but high housing costs slowed that growth. It has tried since January to boost enrollment by opening its schools to residents of other districts, gaining about 300 students. 

The amount of money necessary to buy a home – and home prices in general – increased under President Joe Biden. When he took office, a $78,000 household income was required to buy a median-priced home in the U.S. Four years later it was $117,000, a 50% increase. 

McKinney’s average home price is more than $581,000, according to the district’s website, which exceeds the median national sale price of $418,489. 

Other affluent Dallas suburbs also are closing schools because of enrollment drops, including neighboring Frisco, which closed a middle school, and Plano, which shuttered four schools last year.