Starbucks and your home value – are they really connected?

We talk a lot about how to increase the value of your home in this blog. We explain things like how stainless steel appliances and hardwood floors make the top home improvement list. Or how central air conditioning and more storage space are what buyers wish for in a new home.Starbucks in Louisville, CO

But silly us, it turns out all along we should have been telling you to buy your next home near a Starbucks in order to really build your equity.

In their new book, “Zillow Talk”, the researchers at Zillow tell us that since 1997, homes within a quarter mile of a Starbucks have appreciated on average 96 percent compared with 65 percent for all homes in the United States. They call it the “Starbucks Effect”.

But come on, can Starbucks really take credit for increasing the value of your home and the surrounding community? We know that buyers want to have restaurants and coffee shops within a short walk, bike ride or drive from their home. But does Starbucks really carry that much weight? Doesn’t Starbucks have a stable of analysts who study the growth trends and then place their stores accordingly to be ahead of that growth? We’d sooner think the growth isn’t there because of Starbucks but that Starbucks is there because of the anticipated growth.

Apparently the gurus at Starbucks anticipated this kind of response so they ran different numbers to double check their results. They studied home values within a quarter mile of a store, and then compared those values with homes in a ring between a quarter mile and a half mile from the store. Turns out the houses in the closest ring to Starbucks appreciated more than 21 percent over five years, while the homes in the farther out ring only appreciated 17 percent. Interesting.

We like to our visit our local Starbucks and enjoy catching up with friends and neighbors there. In the warmer months we often walk down on a Saturday morning with our dog, Tucker and sit on the patio to enjoy a chai. So we can see the attraction. Yet, we strongly advocate for frequenting a favorite, locally owned coffee shop, like Paul’s Coffee in Louisville, Cannon Mine Coffee in Lafayette, and The Cup in Boulder. Supporting locally owned businesses makes for a stronger more connected community and we believe that’s one of the best ways to increase home values there is.

I am a Boulder County real estate specialist. Over the past three years, I have earned the distinction of being named a 5280 Five Star Realtor. This puts me in the top 7% of all Realtors in the Denver Metro Area for customer satisfaction. If you would like to schedule a buyer or seller meeting with me, please feel free to call me at 303-579-1617 or contact me by email.

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