Purpose: This study aims to examine how socially constructed community perceptions shape institutional attractiveness and explain the mismatch between objective school quality and parental school choice. Research Method: A qualitative single-case study was conducted at SDN Sonoadi, an Indonesian public elementary school that consistently demonstrated high academic and non-academic achievement but experienced declining student enrollment during 2021–2026. Data were collected through semi-structured interviews, observations, and document analysis involving school leaders, teachers, school committee members, parents, alumni, and community leaders. Data were analyzed using the interactive model of Miles, Huberman, and Saldaña, guided by the processes of externalization, objectification, and internalization. Results and Discussion: The findings reveal that institutional attractiveness is socially constructed through shared experiences, daily interactions, cultural values, school location, religious orientation, environmental conditions, and collectively formed social images. These factors frequently outweigh objective indicators of school quality, explaining the discrepancy between educational achievement and public preference. The findings demonstrate how the processes of externalization, objectification, and internalization collectively shape parents’ school selection decisions. Implications: The findings suggest that strengthening institutional attractiveness requires not only improving academic performance but also enhancing strategic communication, community engagement, and reputation management. Originality: This study extends Berger and Luckmann’s Social Construction Theory by demonstrating how institutional attractiveness is socially constructed through collective meaning-making, offering a novel theoretical explanation for the paradox between school achievement and declining student enrollment.