By Louisa Ward, North 32nd Real Estate Expert
Living near a Starbucks isn’t just good for your caffeine addiction — it actually increases your home’s value, according to a Harvard study.
In the study, economists used Yelp to track gentrification results from Starbucks openings. They found that each Starbucks store that opened in any zip code has been associated with a higher increase in housing prices within a year than other areas during the same time. Not only that, but, according to research from Zillow.com, when a Starbucks moves into a neighborhood, houses go up in price at double the standard rate.
Starbucks comes by its reputation as the bellwether of gentrification honestly. Its entry into an area really does predict a measurable change in demographics. When the coffee giant colonizes a neighborhood, home prices tend to jump. The population tends to get more educated and younger.
Is it the chicken or the egg? It could be that Starbucks’ location scouts are just better at spotting the next gentrifying neighborhood than your typical homebuyer is. Many of the factors a hip chain wants for a new location (walkability, other upscale businesses nearby, and a population with disposable income) are the very factors that would contribute to property price increases as well.
I guess it is time we welcome the new Starbucks in North 32nd on the northeast corner of 32nd and Shea. Whether they cause the home value increases or they just predict them, it is good news for us as North 32nd home owners.
85028 single family housing stats
• Median Price of Listings Sold in January 2019: $403,500
• Median Price of Listings Sold in January 2020: $431,993
• Median Price of Listings Sold in January 2021: $480,000
• Median Price of Listings Sold in April 2021: $571,250
85032 single family housing stats
• Median Price of Listings Sold in January 2019: $292,000
• Median Price of Listings Sold in January 2020: $338,000
• Median Price of Listings Sold in January 2021: $365,000
• Median Price of Listings Sold in April 2021: $405,000
Louisa Ward and Robyn Viktor are senior partners at My Az Realty Team and RE/MAX Excalibur. They are part of the Top 2 percent of Realtors in Phoenix and Scottsdale with a combined 40 years of experience. Louisa is also an active member of the North 32nd community, serving as a local real estate expert, member of the PV Village Planning Committee, and a Mountain Preserve Block Watch leader. To learn more, visit MyAZRealtyTeam.com, call 480-630-6016, or e-mail MyAzRealtyTeam@gmail.com.