What does that look like in practice? Let’s look at the historical home value appreciation of areas that now are located within a quarter mile of a Starbucks. A home that is now near a Starbucks would have sold, on average, for $137,000. A home that is not near a Starbucks would have sold, on average, for $102,000.
Fast-forward 17 years to 2014. That average American home has now appreciated 65%, to $168,000. But the Starbucks-adjacent property has far outpaced that, appreciating 96% to $269,000.
Starbucks is the fuel, not the follower
“Try some decaf,” you may be thinking. “Home prices rise and fall for a lot of reasons. How do we know this has anything to do with Starbucks?” For instance, maybe this isn’t a Starbucks Effect at all. Maybe it’s just a coffeeshop effect.
To examine that possibility, we took a look at another prominent coffee chain, Dunkin’ Donuts.
What did we learn? Homes near Dunkin’ Donuts reflect a similar historical trend. But while they appreciate faster than the nation’s housing as a whole, they still don’t appreciate as fast as properties that are now a quarter-mile from a Starbucks.