The Starbucks Effect: An Increase in Home Values
We have all heard about the three most critical things in buying a home:
Location, location, location.
Location now has a new caveat: being within a quarter mile of a Starbucks. It appears that having your home near one of these ubiquitous coffee establishments not only helps boost your energy but also the price of your house. This increase in home values based on proximity to one of the franchise locations is referred to as the Starbucks Effect.
Zillow’s research department uncovered this phenomena, which shows that between 1997 and 2013, houses that were within that magic quarter mile increased in value by an impressive 96 percent, versus 65 percent for all homes in the Unites States. Homes in Boston showed the most substantial price increase, up 171% during the same sixteen-year period specifically for those situated near a Starbucks.
What’s behind that quarter mile coffee radius? Before choosing a location for one of its stores, the company vets neighborhoods and pinpoints those that show significant signs of growth. So, rather than Starbucks making a difference in the community, The Starbucks Effect speaks more to the company’s stellar ability to identify prime locations for their establishments.
A quick Google search reveals that there are approaching 700 Starbucks locations throughout the Silicon Valley, including 10 in Palo Alto alone.
There are many homeowners in the Silicon Valley and beyond that are enjoying the many benefits of Starbucks, their latest being increasing home values for those fortunate enough to reside close by.
Of course, when buying a home, there are many other determining factors, and unless being within a hop, skip and a ‘jolt’ of Starbucks is a ‘must have’ for you personally, being in the ‘caffeine epicenter’ shouldn’t necessarily be a top priority. Budget, neighborhood, schools, commute and many other items all come into play to find the perfect home for you and your family.