Recent data suggests moving close to Starbucks increases home values
Recent data from Zillow reveals that homes close to Starbucks cafes gain value much more rapidly than the average residential property.
This conclusion was based on housing statistics that go back to 1997. Compared to other houses, the resale values of homes around Starbucks locations went up about 31 percent faster. This means that a $200,000 property near the cafe probably gained $62,000 more than it would have in a different locale.
Move close to a Starbucks and increase your home’s value 31% faster
The data also shows that Starbucks triggers higher real estate values rather than following them. Furthermore, it indicates that the owners of homes nearest to the cafe benefit the most. After each new coffee shop was constructed, these properties generally experienced the largest and most rapid increases in value.
People like to move close to safe areas
It is not entirely clear why this happens, but a few feasible explanations can be found. Most people prefer moving to safe areas; Starbucks often moves it’s cates to places with comparatively little theft and vandalism. Some homebuyers also see these cafes as a sign of gentrification.
Another factor is that more and more Canadians prefer to live near eateries and shops. The National Association of Realtors recently conducted a survey on housing preferences. It found that six out of 10 people want to live in communities with nearby businesses that they can reach on foot.
Moving to a community rather than just a home
The NAR survey also revealed that the majority believe that easy access to parks, restaurants and stores holds more importance than owning a large lawn or house. Many people favor moving to areas with public transit, bike lanes and affordable housing. Starbucks coffee shops can often be found in areas with these amenities.
The nature of rising resale values also points to a general shift in the types of communities that Canadians prefer to live in. As homeowners grow weary of long commutes and high automotive expenses, polls show that fewer people favor strictly residential suburbs and rural housing developments.
The bottom line is that a home buyer needs to carefully evaluate the convenience and practicality of a neighborhood before moving there. While some Canadians are still content to travel long distances to everyday destinations, the majority of people would prefer to move to land with extra acreage and a nearby Starbucks.