It seems like you can’t turn the block without running into a Starbucks on at least one corner. While this might be a significant boon for the coffee lover, what you might not know, is that it can also have a very positive effect on the value of your home. Although there are those that have a negative view of this worldwide phenomenon, overall its popularity continues to remain strong. One thing you can certainly count on is having one in your neighborhood can be considered an asset. Consider these three ways having a Starbucks move into your community can affect the value of the properties around it.
Proven Benefit #1
Home Value Increased Faster Overall
According to an article published by CNN Money, homes that were in close proximity to a Starbucks increased in resale value by 96% in comparison to all other homes sold in the U.S. during the period 1997 to 2013. Of all cities survey, Boston scored the highest increase with a massive 171% difference over the national average and 45% over all other homes in Boston.
This is a definite benefit to those who are looking to sell but may not be such good news for those who are in the market to buy. It can also prove to be a benefit for flippers who are looking to buy as soon as plans to build are announced. Carefully planned flips can prove to be highly profitable.
Proven Benefit #2
Not Just the Immediate Neighborhood
According to a study published the Harvard Business School using data supplied by online business review site Yelp, the U.S. Census Bureau, and Zillow, anytime a Starbucks is built within a zip code, the homes in the area go in value by 0.5% within 12 months of the day it opens for business.
The only thing missing from this study is data showing whether the prices went up directly because of the Starbucks being built or having a Starbucks in the neighborhood started bringing in a wealthier segment of the population. The one thing this and other studies do show, having a Starbucks move into the neighborhood is considered to be a good sign that things in the community are going to be changing for the better.
Proven Benefit #3
A Sign That “The Times They Are a Changing”
Along with the Harvard study above and an article in the Washington Post, adding a Starbucks to a neighborhoodis a sure sign, that as Bob Dylan once sang, “The times they are a changing.” Which is another way of saying the adding Starbucks to the neighborhood not only helps increase housing values but is also a sign that the overall demographics in the community are about to change. If you are a savvy real estate investor, this should definitely say something to you regarding where to look for your next long-term investment. Start by looking for your next venture to be in a neighborhood where there has to be a Starbucks built if such a community can be found anymore and is to be the future home of one.
You can count on the value of the property you buy increasing within one year of the store opening. Often referred to as “neighborhood gentrification” the process happens quickly and so do the values of property values.