A New Starbucks opening can signal gentrification in a neighborhood, Harvard study finds

When a new Starbucks comes to town, you can expect to find a 0.5% increase in house prices in that ZIP code within a year, according to a recent study by the Harvard Business School.

But that doesn’t mean that Starbucks is attracting more affluent residents. In fact, the opposite is likely true.

The study presents a broader assessment of gentrification measures, determining that the neighborhood development is “strongly associated” with a jump in the number of restaurants, bars, cafes and grocery stores.

Based on their observations, the study asserts that a Starbucks opening can be a sign of gentrification.

“The presence of a Starbucks is far less important than whether the community has people who consume Starbucks,” the study stated. “Consequently, we think that this variable is likely to be a proxy for gentrification itself.”