24-06-2025
California's Sky-High Housing Market Seeds Muni Bond Default
California's Bay Area housing market has gotten so expensive, it's threatening investors in a local charter school.
Downtown College Prep, a three-campus charter school operator in San Jose, defaulted on $34 million of municipal bonds earlier this month. The school caters to low-income, first-generation students and has been struggling to meet enrollment targets for years. With funding dependent on how many pupils attend, the school's finances were pressured. Officials blamed the area's high home prices for deterring students.
