Zillow Talk: The New Rules of Real Estate, published this week by the CEO and chief economist at Zillow, analyzed the prices of homes within a quarter to a half mile around a Starbucks location for five years after the coffee shop opened.
The findings show that properties closest to Starbucks appreciated by 21 per cent, while properties a bit further away grew by only around 17 per cent.
In November, REP sister site, CREW, reported on a similar study [www.canadianrealestatemagazine.ca/news/want-to-ensure-your-investment-pays-out-buy-near-a-walmart-185249.aspx], published in the Journal of Urban Economics, which found that homeowners have seen a rise in house price when a Walmart moves into the neighbourhood.
Starbucks, arguably one of the most widely-recognized retailers in the world, has more than 19,000 locations in 60 countries. It employs a team of 20 analytics and real estate experts who focus solely on finding the next Starbucks location, going over everything from traffic to other local businesses in a potential neighborhood.
It can be difficult to predict which neighbourhood will appreciate in value, but apparently it pays to buy a property close to a Starbucks.