Markets Where Starbucks Boosts Home Values the Most

As someone who loves coffee and real estate this is a great story and great news! "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." It gets even better, DC is ranked at the top - third to be exact - as one of the metro cities where Starbucks has had the biggest effect on home values.

If you've been thinking about buying or selling, give me a call 571-970-7195, or email me, whitney@whitneyminnich.com, to start the conversation - we can even meet over Starbucks coffee.

Markets Where Starbucks Boosts Home Values the Most 
Starbucks caffeinates home values, too, and some cities see a bigger jolt than others.

Here’s a hot home-buying tip that’s been percolating since “Zillow Talk: The New Rules of Real Estate” was released: 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.
In that time, Starbucks has had the biggest effect on home values in these metro areas:
  1. Boston, MA, ironically, deep in the heart of Dunkin’ Donuts territory
  2. Philadelphia, PA, where blonde roast reigns, according to Time magazine
  3. Washington, DC
  4. Chicago, IL, Starbucks’ first market outside the Northwest
  5. Baltimore, MD
  6. Portland, OR, where the favorite drink is an eggnog latte
  7. Miami-Fort Lauderdale, FL
  8. Atlanta, GA
  9. Seattle, WA, Starbucks’ (and Zillow’s) hometown
  10. Riverside, CA
Check out Zillow Research for more details on how proximity to Starbucks affects home values in 20 of the nation’s largest metro areas.
SBUX effect graphic

Popular posts from this blog

Advice Young Adults Need to Avoid Buyer’s Remorse

Advice Young Adults Need to Avoid Buyer’s Remorse March 4, 2019 Most young adults have financial regrets about their home purchase, a new Bankrate survey shows, but much of their grief could have been avoided with proper planning. That’s where you come in: Younger buyers have a need for more professional guidance about the costs of homeownership. Sixty-three percent of millennial homeowners—more than any other generation—expressed buyer’s remorse, most often pertaining to closing costs, home maintenance, and other hidden expenses, according to the survey of more than 2,000 consumers. “When you buy a house, you can’t call the maintenance company or a landlord to fix major issues; it’s all on you,” says Luis Rosa, a financial planner in Henderson, Nev. Extra expenses, such as needing a new air conditioner, furnace, or water heater, often catch first-time buyers by surprise, Rosa adds. “I always advise home buyers to create savings buckets and open a savings account
Read more

Housing Slowdown Doesn’t Scare First-Time Buyers

Housing Slowdown Doesn’t Scare First-Time Buyers March 4, 2019 Despite recent declines in home sales, sluggish growth in single-family home construction, and mounting affordability concerns, first-time buyers are outperforming other segments of the market, according to a new report released by Genworth Mortgage Insurance. “The first-time home buyer market has been more resilient during the [housing] slowdown compared to repeat buyers,” writes Tian Liu, chief economist at Genworth Mortgage Insurance. About 482,000 first-time buyers purchased homes in the fourth quarter of 2018. Though that’s 3 percent lower than a year ago, it bests the 7 percent year-over-year decline in repeat buyer activity, according to the report. “This is a reminder that first-time home buyers differ from other buyer groups in terms of why they buy,” Liu notes. “Their purchase decisions are more likely driven by the fact that many are starting families and reaching peak homebuying ages. Even
Read more

What Buyers Should Ask After a Home Inspection

What Buyers Should Ask After a Home Inspection October 9, 2018 You are here Home News and Commentary Daily News What Buyers Should Ask After a Home Inspection Share Facebook Twitter LinkedIn Print October 9, 2018 After an inspector has finished a home report, buyers may feel overwhelmed by any flaws that might have been found. That’s why it’s important they take the opportunity to learn more so that they can move forward confidently in the transaction. A recent article at realtor.com® recommends home buyers ask their inspector clarifying questions like: “I don’t understand this; what does it mean?” or “Is this a major or minor problem?” and “Do I need to call in another expert for a follow-up?” Home inspectors are bound to uncover something in a home; no home is perfect. But the majority of the problems they uncover will likely be minor. Have the home inspector clarify which problems fall within the “minor” or “major” categories. Keep in mind: “The inspector can't tel
Read more