And being a real estate agent I just had to read the article. I found it interesting. The writer seems to refer to a book written by Zillow called "" where in this book a chapter was dedicated to discussing how homes close to a Starbucks can expect an increase in their property value.
Here are some key points:
1. Living within a quarter of a mile from a Starbucks homeowners will see an increase in your value of your home faster than homes that are not with the quarter mile of a new Starbucks.
2. The increase is about 96% for those homes within that quarter mile. The figures were gathered by Zillow when they looked at years between 1997-2013. Homes outside this radius saw an increase of about 65%.
3. Whether or not Starbucks is the result of such increase is up for debate but when a Starbucks is introduced to a neighborhood it has been seen that developers become attracted to the area as well because they believe that the neighborhood is on the rise.
4. Zillow also looked into how Dunkin Donuts influenced a neighborhood. Zillow discovered that an increase was seen as well when a Dunkin Donuts was introduced but the increase was not as much as when a Starbucks is introduced.
Side note: I have heard the same is true for when a Home Depot is introduced into a neighborhood, though not mentioned in the article or the Zillow book as far as I could see.
After reading this article I went on to Google "Starbucks Effect" and Zillow and I found this article which goes into this topic a lot more. I was not able to find the book online though. My guess is that it must be ordered in order to read it.
What I gather from this other article is that Zillow approached Starbucks (both are based in Seattle) to discuss how home values are influenced by Starbucks. Zillow was able to look through their database to gather statistics and Starbucks Real Estate Analytics Team did the same. Zillow dedicated an entire chapter to this topic.
Apparently a lot of weight is put on this too. They say home buyers either really like drinking coffee or that Starbucks is seen as a proxy for gentrification.
Now whether or not Starbucks is the reason for this increase and desire is still up for debate and I get it. There is an argument for every angle. I for one love living near a coffee shop. Starbucks or whatever.
But hey, maybe it is the Starbucks that is increasing property value of homes close by...maybe it is not. Maybe it is the combination of businesses and the neighborhood itself where the Starbucks is that makes homes around Starbucks desirable and experience an increase in value...maybe it is not. Maybe it is the fact that Starbucks looks at statistics too before they determine where they will place a store (they have their own analytics for find out out what neighborhoods are up and coming)...maybe it is not.
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