There are a lot of factors can increase the value of your home. Location, usable space, age, schools, and curb appeal are just a few. But did you know that living close to a popular coffee shop can increase home value?
According to a 2018 Harvard Business School study, when a new Starbucks is introduced into a zip code, there is a 0.5% increase in housing prices within a year. And that's per Starbucks. So if there are two locations in a zip code, you can expect a 1.0% increase. The study is careful to say that it's not clear if the Starbucks coming to the area is the reason for the increase or simply because more affluent people are moving into a particular area that would patronize the coffee chain. The study used the business review website Yelp for measurement of economic changes in neighborhoods by looking at reviews and matching with data from the Census Bureau.
And it's not just coffee shops that can increase home values; having an organic grocery store nearby can help too. According to a 2017 Zillow study, there are 2.8 million homes located near a Whole Foods or Trader Joe's that are enjoying home appreciation values at double the rate of homes in other areas. The U.S. median home was worth less than $180,000 by the end of 2014, while homes near a Whole Foods or Trader Joe's had a median value of $276,200 and $406,600 respectively. And value grocer Aldi isn't far behind. According to an ATTOM Data Solutions analysis from 2017, property appreciation for homes near an Aldi was 51% over a five-year period.
So be sure not to glaze over the variables that can drive home values! Paying attention to popular businesses in an area can help provide insights into future home values.