You may have seen it on CNN, CNBC, or even the Huffington Post. Based on recent information compiled from the real estate database Zillow, homes located near a Starbucks coffee shop increase in value at a far faster rate than homes not located near a Starbucks (it appears to be only coincidence that Zillow and Starbucks have their corporate headquarters near each other in Seattle). Could it be true, that coffee grounds are grounds for the ground you house is on to appreciate? What, exactly, can we mocha this data?
Zillow information shows that homes located near a Starbucks appreciated 96% while homes not near a Starbucks appreciated only 65%. CNN Money repored that the value of a home located within a quarter mile of a Starbucks rose faster than any others. In some areas such as Boston, nearby home values were hotter than the coffee itself, appreciating a whopping 171%. In Metro Atlanta, the appreciation is not nearly that great, but in our market the homes appreciation is still brewing substantially when near a Starbucks location. According to Zillow eonomist Stan Humphries and Zillow CEO Spencer Rascoff, the location of the Starbucks is not situated because of the higher prices of homes; it appears to be fueling, not following, the homes' values.
One study decided to also look at Dunkin' Donuts, and found that homes near Dunkin' Donuts reflect a similar historical trend, but they still do not appreciate as fast as homes near Starbucks' locations.
So should you buy a home located near a Starbucks, or purchase a home where a Starbucks is scheduled to be built? We recommend you have a nice cup of coffee and then latte consider it. Let's welcome Starbucks to the neighborhood.
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