Did you know that the value of homes on the market that are within a quarter-mile of a Starbucks coffee shop are rising faster than ones that are not? According to the research of Zillow, this has been the case not only for a couple of months but years.
Between the years of 1997 and 2013, the value of homes near coffee shops increased by 96% percent! When you compare this to the average increase of 65% that is a significant increase. The biggest “Starbucks Effect” boomed out of Boston a couple of years ago when home values increased 171% in the same period.
“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.”
Starbucks home delivery service is the main cause for this housing market value increase. Although their delivery service isn’t free, the convenience and demand for their service is unbelievable. There is just something about having your coffee delivered to you at home/work every morning that cannot be beat.