Coffee: it does more than just help you get out of bed in the morning – it also helps your home value.
A recent study released by Harvard Business School found that when a Starbucks pops up in your neighborhood, your home can increase by 0.5% within a year.
The conclusions from the study pinpoint how the expansion of restaurants, bars, cafés, grocery stores, and Starbucks chains can be a sign of gentrification. However, the study argues that these openings don’t necessarily attract affluent residents – but rather, how these openings mesh in with the neighborhood.
The study explains, “The most natural hypothesis to us is that restaurants respond to exogenous changes in neighborhood composition, not that restaurant availability is driving neighborhood change.”
If you’re a realtor, or in the process of thinking about selling your home, it might be worth seeing what new construction might be coming near the neighborhood. It’s important to know how to market your home to potential buyers, and if the neighborhood is changing, your approach might need to change.
And who knows? You might just see a spike in caffeine and home value.