The economics of the RCSD and Rye Real Estate are tightly coupled. Housing stock turnover commissions and development margins are linked to home values which, in turn, are correlated to the quality of our schools. The graph below shows the size of 2010 broker commissions and home builder returns in proportion to important components of the Rye school budget.
(Source: Rye City School District Adopted Budget 2009/2010; Rye City School District Long Range Planning Study; Onboard Informatics; The National Association of Home Builders)
Home Builder Return Assumptions: $7.3M in 2010 based on 26 new homes, Avg sale price $1.4M, profit margin 20%
Brokerage Commission Assumptions: $16.6 M based on 198 homes sold in 2010, Avg sale price $1.4M, commission 6%