Buying near a Starbucks has benefits beyond easy access to your double-tall, non-fat, bone-dry cappuccino.
Between 1997 and 2014, homes within a quarter-mile of a Starbucks increased in value by 96 percent, on average, compared with 65 percent for all U.S. homes, based on a comparison of Zillow Home Value Index data with a database of Starbucks locations.
Some areas brew even frothier returns, as Julie Lerch can attest.
A little over a year after she moved in, a Starbucks opened less than two blocks from her Chicago condo. Three years later, she sold the 2-bedroom unit for $100,000 — or 53 percent — more than she paid for it.
“Everybody was all excited, because our property values did go up,” she said. “It was a sign that the neighborhood was changing, and people who normally wouldn’t have chanced that neighborhood said, ‘Oh, that’s a Starbucks.'”
Lest you think all java purveyors have the same effect, the data showed that homes near Dunkin’ Donuts locations appreciated 80 percent, on average, during the same 17-year period.
... excerpted from an article posted on the Zillow blog.
A study in cause and effect. Did Starbucks move into a neighborhood cause the gentrification, or did Starbucks see the trend and jump on it?
ReplyDeleteYou ask hard questions vanilla.
DeleteI guess having one within walking distance would be nice. I seldom if ever stop at Starbucks. Actually when my internet is down is when I show up at one! That's pretty interesting information.
ReplyDeleteWe have several coffee shops within walking distance and I rarely frequent them Debby. I guess my internet is just too good. :)
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