THE STARBUCKS EFFECT…SERIOUSLY!
Some property owners spruce up their interior designs to feel more organized, comfortable or proud of their homes – others take on improvements to prepare to sell. Homeowners in both scenarios should reflect on popular upgrades (http://www.thedcladies.com/2015/01/21/2015-home-trends/), because every upgrade factors in to the overall value of a home. If you’re thinking about relocating, Washington, DC is a hot market for sellers, packed with eager buyers. Plus, spring selling season is just kicking off.
One of the best times to list your home is from mid-March to mid-April, a beautiful time in the DC Metro area for sure. The cherry blossoms and tulips alone will turn heads, not to mention the monuments, museums, art, theatre, amazing restaurants, music and the Caps & Nats! Handy women across Washington, DC should pull on their working clothes and start repainting, packing away cluttered items, landscaping to improve curb appeal and adding extra light throughout their homes. All of these improvements are critical to getting the best price for a property at resale.
Did you know your local Starbucks actually fuels home appreciation, too? Not only are nearby Starbucks ideal for those Saturday morning strolls to snag your favorite double-tall vanilla latte, their presence actually pays off when you’re ready to sell your property. In essence, all this time you thought you were paying Starbucks; you’re actually lining your stylish coin purse thanks to them.
Between the years of 1997 and 2013, the average appreciation of U.S. homes was 65%. Homes within a quarter mile of Starbucks experienced a whopping 96 percent appreciation. The numbers show that home values surged after Starbucks entered communities. So, if you have a nearby java addition to your neighborhood, expect significant profits at resale.
Turns out, Washington, DC had the third highest Starbucks Effect of all the major metros that Zillow analyzed. During the same time period, homes in Washington, DC appreciated 121.8%, while local homes near Starbucks experienced home value increases of 151.4%.
Markets Where Starbucks Boosts
Home Values the Most
Starbucks caffeinates home values too, and some cities see a
bigger jolt than others.
#ZillowTalk / Market Trends / story / By Melissa Allison on 26 Feb 2015
Here’s a hot home-buying tip that’s been percolating since “Zillow Talk: The New Rules of Real Estate” was released: Buying near a Starbucks has benefits beyond easy access to your double-tall, non-fat, bone-dry cappuccino.
Some areas brew even frothier returns, as Julie Lerch can attest.
A little over a year after she moved in, a Starbucks opened less than two blocks from her Chicago condo. Three years later, she sold the 2-bedroom unit for $100,000 — or 53% — more than she paid for it.
“Everybody was all excited, because our property values did go up,” she said. “It was a sign that the neighborhood was changing, and people who normally wouldn’t have chanced that neighborhood said, ‘Oh, that’s a Starbucks.’”
Lest you think all java purveyors have the same effect, the data showed that homes near Dunkin’ Donuts locations appreciated 80%, on average, during the same 17-year period.
In that time, Starbucks has had the biggest effect on home values in these metro areas:
- Boston, MA
- Philadelphia, PA
- Washington, DC
- Chicago, IL
- Baltimore, MD
- Portland, OR
- Miami-Fort Lauderdale, FL
- Atlanta, GA
- Seattle, WA
- Riverside, CA