Zillow – Can Living Near a Starbucks Boost Your Home Value?
We all know living near a favorite coffee shop is convenient, if not wallet-draining, but can it actually boost your wallet in the long term? New research suggests that living near a Starbucks can actually increase your home value.
It seems that being close to a Starbucks does have a marked effect on home values, particularly in the East, according to a Zillow report.
Between 1997 and 2014, homes within walking distance, or one-quarter mile, of a Starbucks appreciated 96 percent. Compared to the national average for the same time period, 65 percent, it seems having a barista close by is a smart real estate move.
But not all coffee shops lead to higher values. Homes near Dunkin’ Donuts only appreciated 80 percent during the same time period, giving Starbucks-adjacent locations a clearer edge.
Boston was the city with the biggest Starbucks effect with home values jumping 45.4 percentage points. Philadelphia was No. 2 with 31 percentage points, followed by Washington, D.C. at 29.6 points. Chicago scored 28.9 percentage points, and home values in Baltimore, the No. 5 city on the list, went up 24.6 points.
Seattle, the home of Starbucks, where many stores are prevalent, was No. 9 on the list. Perhaps residents there are less dazzled by the brand since its presence is more commonplace.
Chicago resident Julie Lerch was elated with the returns she saw for her home. When a Starbucks moved into her neighborhood a year after she did, she was able to sell 3 years later and rake in 53 percent more than she paid. She attributes this to the sudden appearance of the coffee giant.
“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,'” Lerch said.
Wondering what other factors lead to higher home values? You may want to skip adding a basement or renovating the kitchen. There are much better improvements to make if you have some extra funds, according to the data.
There’s also the benefits of adding a “specialty room” if you have the budget to make major updates to your home. Today’s home buyers want media rooms — a jump from 30 percent in 2004 to 40 percent in 2012.