Zillow: Starbucks boosts property values in Boston [VIDEO]
Posted on Monday, March 2, 2015 at 10:41:12 AM
Home prices are on the rise in Boston. According to the Boston Globe, the rising costs have many buyers moving outside of the city toward its suburbs and beyond in the search of affordable residential financing rates and prices.
However, there is one unusual factor that could be to blame for the pricey homes near the city: a popular coffee chain. Zillow crunched the numbers and found that homes near a Starbucks location increased in value by roughly 96 percent between 1997 and 2014. The average American home saw values climb by only 65 percent during that time, while homes near a Dunkin' Donuts location had home value appreciation of 80 percent.
The Starbucks influence was felt in many metropolitan areas, but Boston saw the greatest discrepancy. Zillow reported that Boston homes near a Starbucks had home value appreciation of 45.4 percent. In second was Philadelphia at 31 percent, followed by Washington, D.C and Chicago at 29.6 percent and 28.9 percent, respectively.
For example, Chicago resident Julie Lerch told Zillow that she sold her condo for $100,000 more than she initially paid - after only three years and a new Starbucks.
"Everybody was all excited, because our property values did go up," she said, referencing the opening of the Starbucks. "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.'"