Does Starbucks signal higher home values?
Arrival of Starbucks seems to spur higher-valued home development
Can the presence of a Starbucks spur the development of higher-valued homes? According to the book "Zillow Talk," Starbucks seems to be fueling the arrival of more expensive homes, as stated on Realtor.org.
According to Realtor.org, the authors of "Zillow," Spencer Rascoff and Stan Humphries, compared Starbucks locations with Zillow housing data, checking the home values located within .25 miles of a Starbucks. They compared those home values with other homes located farther away from the coffee shop. They looked at the data over a five-year period.
According the "Zillow Talk," the research showed that homes located closer to Starbucks appreciated at about 21 percent over five years. In comparison, the homes located farther away appreciated at about 17 percent.
The study also found, according to Realtor.org, that homes located closer to Starbucks locations are also recovering more quickly from the fall in the housing market than homes in other locations.
The study did raise the possibility that Starbucks looks at the housing data to determine where to locate new stores. According to Realtor.org, it doesn't matter which comes first – the housing development or the Starbucks – the homes located near the coffee shop are still appreciating at higher rates.