America may run on Dunkin’ Donuts, or so the donut chain’s slogan claims, but the housing market seems partial to Starbucks, according to two Zillow executives.
In their New York Times-bestselling book, "Zillow Talk: The New Rules of Real Estate," Zillow CEO Spencer Rascoff and Chief Economist Stan Humphries found that, nationwide, homes located within quarter mile of a Starbucks have appreciated more quickly than homes overall.
Between 1997 and 2014, homes within a quarter-mile of a Starbucks increased in value by 96 percent, on average, compared with 65 percent for all U.S. homes, based on a comparison of Zillow Home Value Index data with a database of Starbucks locations. Dunkin’ Donuts locations appreciated 80 percent, on average, during the same 17-year period, Zillow reported.
When looking at the nation’s top 20 largest metros, the five metro areas where home proximately to a Starbucks had the greatest impact on home values were Boston, Philadelphia, Washington, D.C., Chicago and Baltimore, respectively, according, according to Zillow.
In many cases, the overall pace of home price growth in the nation’s 20 largest metros was "dwarfed by the sheer magnitude of total appreciation in these large metro areas," Zillow wrote on its website. In Seattle, for example, homes near a Starbucks appreciated in value by 16 percentage points more than the median value of all homes, but "this effect is diminished in the time series, given that overall appreciation is so high (105 percent for all homes, 121 percent for homes near a Starbucks)," Zillow said.
One notable exception to this rule was Boston, the birthplace of Dunkin’ Donuts, where homes near a Starbucks appreciated 171 percent during this time period, compared with 126 percent for all homes, Zillow reported.



