Zillow CEO Spencer Rascoff’s new book, “Zillow Talk: The New Rules of Real Estate,” apparently contains enough data driven insight on the real estate market to be an Amazon.com No. 1 bestseller.
One of those insights, according to Yahoo Finance, is that proximity to coffee shops increases property values. Rascoff zeroes in on Starbucks locations, since they apparently correlate to property value increases at a greater rate than other coffee shops. Dunkin’ Donuts locations were also scrutinized by Rascoff’s data analysts, and properties located near one of those coffee franchises experienced similar property value growth.
“To make sure this wasn’t just a generic coffee shop effect, Zillow also analyzed properties that were within a quarter mile of a Dunkin’ Donuts (DNKN). Homes nearby appreciated 80% over the same period — a large increase, but still a far cry from Starbucks’ 96%,” wrote Yahoo Finance Reporter Nicole Goodkind.
So, if a Dunkin’ Donuts being near to your residence is good for its value … it would stand to reason that all coffee shops put upward pressure on real estate values, which may explain property values in and around Dexter with so many coffee shops within a six to eight minute drive or less from most neighborhoods.
These are just some of the few coffee shops central to the Dexter area:
So what does a cozy, clean and hopping downtown corner coffee shop like Joe and Rosie do to property values? How about an open, inviting and warm regional meeting destination where musicians and bands perform on a regular basis like Foggy Bottom? Even Coffee House Creamery and Mighty Good Coffee look more authentic and have higher quality than your typical Starbucks, which almost looks like a Panera Bread or an upscale McDonalds if you squint hard enough.
And if Dunkin’ Donuts gives real estate a boost, then I refuse to believe that there isn’t a “BIGGBY effect” as well.
If real estate value is an expression of a community’s desirability to potential visitors and prospective residents, how do you think people’s views from those perspectives would change without Dexter’s coffee shops? How would your view of the community change as a current resident?
Perhaps Mr. Rascoff is reading the tea leaves the wrong way. Maybe an area that’s already desirable for other reasons, such as schools, business environment and just the general makeup of the community fosters and supports high-end coffee shops that cater to an already affluent local population.
I do know one thing for sure. Dexter wouldn’t be the same without Foggy Bottom and Joe and Rosie in particular. As a frequenter of both of these businesses, and a lover of staying alert during the day (read: coffee), my Dexter experience would be severely impacted without these establishments. To those of us who are visitors to Dexter, these places are inviting spaces that we can call home, kick back in a comfy seat and get some work done while sipping a cup of wakey juice.
So what do you think? Please comment on the Facebook post that will accompany this article on the WeLoveDexter.com Facebook page at the link here.