Why it’s a good thing if you live near a Starbucks

This is an archived article and the information in the article may be outdated. Please look at the time stamp on the story to see when it was last updated.

File image

By Katie Lobosco

NEW YORK (CNNMoney – March 5, 2015) — Living near a Starbucks has its benefits for homeowners, whether you’re a coffee drinker or not.

The value of homes within a quarter-mile of a Starbucks rise faster than those that aren’t, according to real estate research group Zillow.

With tens of thousands of Starbucks locations in the U.S., that’s good news for a lot of homeowners.

Between 1997 and 2013, home closer to the coffee shop increased in value by 96%, compared to 65% for all U.S. homes.

The biggest “Starbucks effect” was in Boston, where nearby home values went up 171% in the same time period. That’s 45 percentage points more than all homes in the city.

Starbucks is usually a harbinger of good times for a locality. A new Starbucks gives a sense to developers that the neighborhood is on the rise, wrote Zillow CEO Spencer Rascoff and chief economist Stan Humphries in their new book “Zillow Talk.”

But dig a little deeper and it’s kind of a chicken and egg situation — it’s not like Starbucks can take credit for changing a community. The coffee chain is very good at finding locations that are up-and-coming, the authors said.

Homes near Dunkin’ Donuts also appreciate faster than the nation’s housing as a whole, but not as fast as those next to a Starbucks, according to Zillow’s analysis.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s