When Nashville home buyers are looking for houses, they often think about school districts and crime rates. The last thing on their mind is their closest coffee shop. However, paying attention to how close a Starbucks is to a new house can actually help home buyers make the most out of their purchase. Starbucks stores are actually changing the real estate market in the areas where they are located. This is why Nashville home buyers should ask: “how far is the closest Starbucks?”
Over many years there have been studies of areas where home appreciation is the greatest. A shocking fact is that homes that were located to a coffee shop like Starbucks actually appreciated by a whopping ninety-six percent over the course of sixteen years. There are some cities where the increase in value was even greater!
For the homeowners that invested in that area, that is a huge mark up for when they decide to sell.
With better appreciation in a real estate area, the value of the homes is increasing, as well. When a new Starbucks store opens in a neighborhood there is a spike in the value of the homes by half of the percent within the first year of the store being open.
There is speculation as to why these increases are happening. Some think it is because the store is bringing in new customers who are then spending more money in the neighborhood. Others think that the Starbucks store is a sign that the neighborhood was already on the rise.
New businesses moving into a neighborhood shows that there is demand. With demand are the people who can supply the money to keep the business running. Big name stores will not risk going into small locations that may not do well. Their research team would know if the neighborhood is likely to be profitable and draw in customers with disposable income.
There are some people who have used this information and decided to create a new buying technique. Finding an area where there are no Starbucks locations, but there is one planned can be a difficult task. However, home buyers who are able to secure a house in this area see changes in their home’s value at a rapid rate.
Buying a Nashville house in an area set for new developments is risky. If the developments fall through the investment will not have any growth. But if the developments do help the neighborhood change demographics and become more profitable they have struck a gold mine for reselling the house.
While most Nashville home buyers are not going to base where they live on their neighborhood Starbucks, it is interesting to see how businesses can affect a neighborhood. The more businesses attracted to a neighborhood the better off the neighborhood is in terms of growth. Getting into a neighborhood early on in this growth can save a home buyer money, even if they do not plan on selling their house for a long while.