What fuels Boston real estate values? The answer is the same thing that fuels the rest of us: coffee. In fact, the value of homes within a quarter-mile of a Starbucks rise faster than those that aren't, according to a recent Zillow study.
Between 1997 and 2013, homes closer to Starbucks stores increased in value by 96%, compared to 65% for all U.S. homes.
The biggest "Starbucks effect" was here in Boston, where nearby home values went up 171% in the same time period. That's 45 percentage points more than all homes citywide.
Not a fan of Starbucks and prefer local Dunkin' Donuts instead? Homes near Dunkin' Donuts also appreciate faster than the national average, but not as fast as those homes near a Starbucks.
While it may seem like a solid real estate investment strategy to purchase a home near a Starbuck, it should be noted that the authors of the Zillow study felt that Starbucks is very good at finding up and coming locations and that the coffee shop itself is not the initial real estate value change agent.
Interested in reading more about this study? Check it out here: Confirmed: Starbucks knows the next hot neighborhood before everybody else does