How The High Apartment Rents Affect the Demand for High Schools
In any given state, I noted an interesting correlation between the rate of apartment rents and the demand for high schools. The claims is simply this: the more high the rate of apartment rent is, the more number of high schools in any given state. As to why and in what way this happens so, we will see in the following paragraphs.
With the people paying more rates to the apartment renters, there would be an incentive for them to supply even more, as the law of supply curve shows. Their producer surplus would be sufficiently abundant since they would, certainly, be getting more than their costs of production, otherwise they would not be in the market anyway. But now the first counter-argument to this would be someone saying “Why do you ignore then the law of demand, and the view from the customers’ point of view that they would be less willing to buy with more price, in your case, the high rates of apartment rents, just as the demand curve also says?” But the person asking this, and perhaps many others, ignore that the consumer surplus is, in fact, relatively high in this case of renting an apartment, since it is far more advantageous to them to rent an apartment than to buy a house or risk a mortgage. So their willingness to pay for the apartment rent would always be higher than the average apartment rent fare, as long as the costs of other options of buying a full house or settling down are taken into consideration. So we see that market equilibrium quantity for apartment rents is in fact high, as the point along the supply curve shifts upward. (I consider it unnecessary to enter the graph, as this could be understood easily.)
Now then our main argument comes in view: This high market equilibrium quantity of apartment rents affects positively the quantity of high schools present in a given state. The logic is clear that with more people coming to reside in a given location, the more kids, and the students there would be in need of a secondary education. According to National Center for Education Statistics, the following statistics was found in the years between 2011 and 2012.
|Elementary & Secondary Education Characteristics Data from CCD:2011-2012|
|Total Number of Schools||
Out of many states, Idaho, New York and Washington are shown here, as they demonstrate the three different sets of apartment rental rates on average. As in the previous table, we see that Idaho has the average apartment rental rate of 732$; New York, 2,641$; and Washington, 1309$. For reference to other states and more detailed data, one could visit here: http://nces.ed.gov/programs/stateprofiles/sresult.asp?mode=short&s1=16&s2=36&s3=53
So we see that, Idaho with its 732$ average apartment rental rate has 774 total schools with 279873 students attending, and Washington with relatively more average apartment rental rate of 1,309$ has 1603 more schools than those of the state of Idaho, with 765580 more students attending it; and the state of New York with the highest average apartment rental rate of 2,641$ of the three has 4877 total of schools with 2704718 students attending, twice the number of students in Washington.