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I study how publicly released school social climate information is capitalized into housing markets and affects household sorting. Using the initial release of school climate ratings in Chicago as a plausibly exogenous information shock, I combine a border discontinuity design with event-study and difference-in-differences analyses. I find that homes assigned to higher climate ratings experience price increases and find suggestive evidence that higher-income families sort into these homes. These effects dissipate within a year as information salience declines. A subsequent ratings release generated muted capitalization, but higher-income households continued to react, consistent with unequal access to information.
