Strange but True: The Starbucks Effect Is Real

Bay Area Real Estate Podcast with Greg McDaniels

Does living next to a Starbucks really increase your home value?

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Today I’ve got an interesting question to answer: Does living next to a Starbucks really increase your home value?

Many of you might be wondering what I’m talking about. This may sound like a ridiculous question, but it actually isn’t. If you think that living near a Starbucks has nothing to do with home value, you might be surprised by what I’m about to tell you.

Between 1997 and 2014, studies across America showed that homes within a quarter of a mile of a Starbucks increased in value by 96%.

Let’s face it, not every coffee shop is going to increase home value. Dunkin Donuts just doesn’t stack up.

Does living next to a Starbucks really increase your home value?

This “Starbucks Effect” has swept across the nation. Boston home values increased 45.4%, Philadelphia home values increased by 31%, and Washington D.C. home values increased by 29.6%.

But living next to a Starbucks isn’t the only way to put value into your home. A lot of people think updating the bathroom and the kitchen is the best way to go, but why not make a change that is going to add between 30% and 40% in value?

Studies show that adding a media or specialty room can add a lot of value to your home.

If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.