How Pumpkin Spice Lattes and Home Values Are Connected
Having access to a good cup of coffee is more important than ever, and pumpkin spice lattes are an even bigger reason to visit a coffee shop this time of the year. What does this have to do with home values? There’s more to it than you realize.
Consider the Demand for Coffee
Did you know there are more than 32,000 Starbucks locations around the world? This multi-billion-dollar company is well recognized as a must-have, especially on the daily commute to and from work. For home buyers, finding a home that’s close to a Starbucks could be very important, and for home sellers, being close to one could raise your home value.
Don’t think that it’s true? An American study by Quartz showed that it is! They looked at the location of Starbucks locations and Zillow data to determine that, when it comes to home value, having a Starbucks close by often means a “venti-sized” home valuation is likely.
To be clear, Starbucks itself goes to extremes to find the best real estate to build and expand on, which often means they choose locations close to affluent communities or areas where they believe business will be highly lucrative. Think near main routes in middle-class neighbourhoods or close to highway on-ramps.
And it’s not just a Starbucks effect either. Independent coffee shops are another good indicator of home value. You may also be thinking, what about Tim Hortons? While there’s no official study, we do know that proximity to restaurants and shopping areas is appealing to home buyers, so even trusty old Tim’s could be a contributing factor.
Starbucks has analytic teams working hard to determine where they should build new locations, but as a homeowner, you don’t have easy access to data about your community or the perfect place to buy. Luckily, there are ways to better understand your home’s value.
What Really Goes Into Home Values?
A home value is calculated based on various factors, not just the closest cup of coffee (even during pumpkin spice season). There are plenty of other factors that contribute to a home’s worth. They include the following:
Age and Condition
Your home’s age and the overall level of upkeep are big factors regarding its value. If you haven’t replaced a leaking roof, that degrades the home's value. On the other hand, a 100-year-old house that’s beautifully maintained and restored can be worth much more. Home buyers want to purchase a home that won’t eat up their money with immediate repairs.
Does your home’s living room still have that ’70s vibe to it? Perhaps the basement is walled with wood panelling and covered with green and orange carpets. That’s going to date your home and reduce its overall value. On the other hand, an upgraded basement will add value, as do things like having an inground pool or hardwood floors throughout.
As noted, being close to Starbucks is a part of the puzzle, but that’s not the whole picture. Other factors, like neighbourhood parks and tree-lined streets with sidewalks, make all the difference. People want to be able to drop their kids off at a school that’s nearby, grab that coffee, and get to work quickly. Location makes a big difference in this. Economic indicators in your area could matter, too, such as whether or not there are jobs within it or nearby.
The Local Market
The local market condition matters in home values as well. If your home is in an area with growth and new homes being built, that adds to the demand. If there’s lots of demand and too few homes, your property becomes even more valuable.
Improving Home Values
You can’t convince Starbucks to open a location near you to increase your home’s value, but you can take other steps. Updating and modernizing your home, while leaving out things like accent walls and very personal colour choices, is a good starting point. You can also upgrade the basement, make sure the roof is in good condition, and keep the siding looking fresh and new.
Many factors go into calculating a home’s value, including the most recent sales near you. With pumpkin spice season upon us, now may be a great time to list your home for sale. Just let your buyers know how many minutes it takes to get to the nearest Starbucks!
Get the Support (and PSL) You Need Now
We can help you get the best value for your home. Our real estate agents will give you an idea of what’s impacting home values in Toronto, Richmond Hill, and Markham and help you list your home for sale when you’re ready. Let’s grab a cup of coffee and chat with our realtors about your home.