Don’t think having that Starbucks on your corner is doing any good? Think again!
According a recent statistic, homes located near a Starbucks actually cost more! This news article has been circling the Interwebs over the past couple weeks and many people think it just can’t be possible. But according to a Zillow report, the value of homes within a quarter mile of a Starbucks rise faster than those that aren’t. That could be great news for homeowners that live near Starbucks or it could be tragic for those that don’t. Now, with Starbucks opening hundreds of stores every year, is it just a coincidence or are the developers of Starbucks actually looking at high rising neighborhoods and putting in more shops in those instead? Which is feeding which?
Between 1997 and 2013, homes closer to coffee shops, and Starbucks in particular, increased in value any 96% verses just 65% elsewhere. In Boston, the results were even more dramatic, rising over 170% in the same period.
This effect naturally draws in more buyers. They get the sense that the neighborhood may be improving.. or is Starbucks simply trying to boost economy in a particularly failing neighborhood? Whatever the reason, it’s working both ways. Other popular coffee shops tend to do the same thing but not as high. Maybe it’s the $5 cup of coffee that Starbucks charges that tricks our brains into thinking this is a “better” neighborhood or a more affluent neighborhood even if we spent the last change in our pockets to manage that tall, double macchiato.
So should you be buying homes near a Starbucks? My bet would be to find where a Starbucks plans on building and buy there. The values may not be as high when you buy, but when you sell, you’re all set!
Image by Marco Paköeningrat Flickr