Is Being Near a Starbucks Good for Property Values? Yes
People may shake their heads at the sight of another Starbucks going up in their neighborhood, but homeowners should rejoice at the sight.
Executives of the online real estate database Zillow say having a Starbucks within close proximity to houses can inflate their value. Zillow CEO Spencer Rascoff and chief economist Stan Humphries found that homes within a quarter mile of a Starbucks have appreciated 96%, going from $137,000 to $269,000, from the late 1990s to now. Those homes not near a Starbucks appreciated only 65%, from $102,000 to $168,000.
“Starbucks equates with venti-sized home-value appreciation,” Rascoff and Humphries wrote at Quartz.
To ensure that the effect wasn’t merely due to Starbucks’ prowess at choosing real estate, Rascoff and Humphries surveyed homes within a quarter mile of Starbucks, and then homes that were a quarter to a half mile away. Both appreciated somewhat, but the houses closest to the Starbucks were worth 21% more after five years, while the ones a bit farther out were worth a little less than 17% more.
Being near a Dunkin’ Donuts is better than nothing, but not as good as being close to a Starbucks, they found. Homes near Dunkin’ Donuts appreciated 80% since 1997, according to their analysis.
To Learn More:
Confirmed: Starbucks Knows the Next Hot Neighborhood before Everybody Else Does (by Spencer Rascoff and Stan Humphries, Quartz)
Starbucks Increases Property Values More than Dunkin’ Donuts (by Rachel B. Doyle, Curbed)
Starbucks Baristas Win Class Action Suit over Tips that Went to Supervisor (by Noel Brinkerhoff, AllGov)
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