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The Starbucks Effect

In The New Rules of Real Estate, authors Spencer Rascoff and Stan Humphries tackle "The Starbucks Effect," that now well-known phenomenon that links the appearance of a Starbucks to an increase in home values in that area. It turns out, the effect is most strong on the East Coast. Zillow looked at the top 20 real estate markets in the country and found that in the Philadelphia metro area, homes within a quarter mile of a Starbucks appreciated 31 percentage points more than all homes in the metro between 1997 and 2013. (112.6% appreciation near a Starbucks, versus 81.5% overall). [Zillow]