California’s Sky-High Housing Prices Spur Charter School 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. School and local officials blamed the area’s high home prices for deterring students.

“All schools in Santa Clara county have experienced a decline in enrollment due to fewer children and families, ...