<p>I did not read the whole thread.</p>
<p>IMHO, I would choose the town which has better school system. My reasons:</p>
<ol>
<li><p>Your kid will be what she/he will be, better school system will educate him/her better and the college adcom do know the differences in the rigor of school systems and some time they will not admit even the top students from a lessor school district. </p></li>
<li><p>Even the houses are more expensive, you have a better living environment, less crime better neighborhood. I am selling one of my investment house because it is situated in a crime ridden neighborhood. Murders and armed robberies are frequent over there, I would not consider live there even my kids could graduate from that high school with high honor. This is only an example, does not imply that you have the same situation.</p></li>
<li><p>Better school district has higher return on real estate.</p></li>
</ol>