Buyers who purchase a home near a Starbucks will likely see their home prices increase as a result, according to one study.
A Zillow study found that homes within a quarter-mile of a Starbucks increased in value by 96% compared to 65% for all U.S. homes.
In comparison, homes in close proximity to Dunkin’ Donuts – which can be compared to Tim Horton’s – increased 80% over that period.
The study was focused on home sales south of the border, but it’s safe to assume price habits are similar in Canada.
Especially for major cities.
The study found that in the following cities, proximity to Starbucks had the biggest effect on home prices:
- Boston, MA,
- Philadelphia, PA,
- Washington, DC
- Chicago, IL, Starbucks’ first market outside the Northwest
- Baltimore, MD
- Portland, OR,
- Miami-Fort Lauderdale, FL
- Atlanta, GA
- Seattle, WA, Starbucks’ hometown
- Riverside, CA
One homebuyer profiled in the study experienced impressive appreciation first-hand.
A year after moving into her Chicago condo, Julie Lech was excited to find out a Starbuck’s was being established in the neighbourhood. Two years later she sold the condo for 53% more than she paid for it.
“Everybody was all excited, because our property values did go up,” she told Zillow. “It was a sign that the neighbourhood was changing, and people who normally wouldn’t have chanced that neighborhood said, ‘Oh, that’s a Starbucks.'”
This one simple tip could help your clients ensure maximum appreciation gains.