Yes, Starbucks Does Impact the Real Estate Market, and Here’s Why
Even with the rise of small coffee shops selling organic drip coffees, Starbucks has still become so engrained in our culture that it’s actually starting to affect the real estate market. According to Quartz’s data and expertise compiled from the real estate database, Zillow, more Starbucks locations in a neighborhood lead to higher-priced homes. Starbucks has become a major indicator in determining the market value of a neighborhood, so, yes, your high-priced lattes do affect the real estate market. They call it the Starbucks Effect.
Here’s the breakdown of why Starbucks is equated with higher-valued homes:
-Starbucks is seriously booming, so both commercial and residential properties nearby will also be lucrative. In 2014, the average American home is now appreciated at $168,000, but put that house around the corner from a Starbucks, and the value jumps 96 percent to $269,000.
-It’s not just coffee shops in general. Quartz also gathered similar data for Dunkin’ Donuts locations, and, although it affects real estate prices to a certain degree, the growth is not as rapid as “Starbucks real estate.”
-Starbucks locations aren’t random. The Starbucks team has explained that predicting which neighborhoods will be successful and which locations will be most lucrative is both a fine science and a finessed art.