Sounds like a ridiculous question, but can living near a Starbucks actually affect Columbia SC home values? According to a new book, "Zillow Talk: The New Rules of Real Estate" by Zillow CEO Spencer Rascoff and Chief Economist Stan Humphries, it just might.
The pair write that Starbucks is actually the fuel for gentrification. "Starbucks equates with Venti-sized home-value appreciation," Humphries and Rascoff write. Moreover, Starbucks seems to be fueling — not following — these higher Columbia SC home values.
Columbia SC Home Values Higher Near Starbucks
To make the argument that Starbucks is actually causing this growth, rather than just piggybacking on it, the executives looked at homes within a quarter-mile of a Starbucks compared to those between a quarter-mile and half-mile away. The increase in the value of houses within a quarter-mile radius of a Starbucks outpaced those of Columbia SC home values slightly further away during the five years after the coffee shop arrived in the neighborhood.
In a 17-year span, homes near Starbucks appreciated 96 percent, compared to the average home which appreciated 65 percent. So, assuming Starbucks truly does drive gentrification, how does Starbucks choose where to put its next location and send Columbia SC home values skyrocketing?
The team looks at traffic patterns, businesses and maps for every potential location. But it also leaves a lot of the decision up to "art," and regional teams who know the local areas well.
Turns out, Starbucks' data also has a pulse on the national consumer's mood on the economy, not just on setting the future for Columbia SC home values. CEO Howard Schultz told Time Magazine that Starbucks sales fluctuate with the national mood and tank during moments of political unrest.
What does all this mean? Do you need to add "near Starbucks" to your list of things to look for when shopping for your next home? Perhaps. But we'd say, "don't make it mandatory."
Remember, we post daily tips and news that may affect Columbia SC home values over on Twitter, and also on our Facebook Page. We'd love you to check us out there too.
When it comes to Columbia SC real estate, most millennials say they'd rather rent than buy a home — a decision that could cost them more than $700,000 (or more) over the course of their lives.
Nearly six in 10 millennials (59%) say they'd rather rent a home than buy one, with just one in four saying they are either very or completely likely to purchase a home in the next five years, according to a survey of 1,300 millennials released recently by EliteDaily and Millennial Branding. (This anti-home-buying trend can already be seen: Currently, only about one in four millennials own a home, down from about one in three in the mid-70s and early 80s, according to data from the Demand Institute.) That's "bad news for the Columbia SC real estate industry," the report concludes.
Columbia SC Real Estate Cheaper to Own Than Rent
Whatever the reason, this decision may be a costly one. "In the Columbia SC real estate market it is still cheaper to buy than to rent [each month]" — even when you factor in the insurance and property tax payments, in addition to the mortgage payments, according to Daren Blomquist, vice president of RealtyTrac. And because interest rates are so low, now is a good time to buy Columbia SC real estate — at least if you plan on staying in the home over the long term. As a very rough rule of thumb, if you don't plan on staying in a home you are buying for at least five years, it may make sense to rent instead of buy.
Many millennials will likely rent now but buy a home down the road. But waiting to buy has its costs, too — interest rates and median home prices are likely to rise down the road. At current rates of appreciation, in 10 years the average $190,000 home now would be selling for about $249,000. If interest rates return to their historical norm (from over the past 15 years) of 5.6%, a monthly house payment (including mortgage, taxes and insurance) on a $249,000 home would be $1,574 a month, a 52% increase over the $1,037 house payment for a median priced home now; plus, over that 30 years, you'd pay a total of $566,640 (assuming you put 10% down) for a home worth $558,356 at the end of that period.
If that same millennial rented — let's assume he or she pays $1,312 a month in rent this year (which is the average fair market rent for a three-bedroom nationwide, according to RealtyTrac) — and his or her rent appreciates at a rate of 2.7% a year (the average increase over the past decade, RealtyTrac says), he or she will end up shelling out nearly $717,000 in rent over that 30-year period — all without an asset to show for it in the end. Of course, he or she can cut that by having roommates, but at some age, he or she is probably going to want out of the roommate game, unless it turns out to be a spouse or love interest.
The bottom line in this whole scenario is simple. If you can afford to buy Columbia SC real estate rather than rent, do it. If you can't afford it, don't. You don't want to end up in a situation where you have to foreclose on a home because you bit off more than you can chew.
Find more news articles as they relate to buying Columbia SC real estate in the Columbia SC Home Buyer Tips section under Columbia SC Real Estate Categories to your right. And find us on Facebook and follow us on Twitter for daily updates we post there as well.
Nearly half of Columbia SC homebuyers surveyed by The Demand Institute who say they plan to move at some point in the future say that location still matters for them.
While some Columbia SC homebuyers say they will move for a larger or nicer home, or perhaps buy a home for the first time, three out of every four movers say that a location consideration is a reason for moving.
Most Columbia SC homebuyers who answered the survey said they won't go very far. More people seem to be wanting to move closer to city centers and are looking for denser, more walkable living. But most Americans in general say they will still continue to choose to live in the suburbs.
Findings of Columbia SC Homebuyers Surveyed
For most Columbia SC homebuyers, the location of their home is as important as or even more important than the physical home itself. So it's not surprising that location-related reasons play a critical role in the decision on when and where to move. 75% cite one or more location-related reasons for why they are planning to move.
While location plays a big rol in housing decisions, most Columbia SC homebuyers say they will stay in state, and more than half (59%) will move within 30 miles of their current home, and 27% of those plan to move less than 10 miles from where they live now.
A big factor for Columbia SC homebuyers is the desire to feel safe where they live. "Safe Neighborhoods" is a top unmet housing need for many Columbia SC homebuyers, as well as most Americans nationwide.
Other location-related priorities vary greatly. Those with school-age children care about good schools, while those in the workforce want to be close to their job. Others want to be in walkable areas near entertainment, services and public transit, and some don't want to be close to anything at all.
Since most Columbia SC homebuyers have at least one car, they continue to be fine with being a short drive from most services and amenities. Still, most do want to be within walking distance of one or two places, like a park, bus stop or convenience store.
There are important benefits associated with more walkability. More walkable communities report stronger expectations with home price growth, and are also more likely to report that their quality of live has improved in the past few years.
As you can see, there is tremendous diversity among Columbia SC homebuyers in terms of features and benefits. This diversity will likely persist going forward, given that these differences reflect divergent consumer needs and preferences. And this is a good thing, providing Columbia SC homebuyers with options consistent with their life stage and preferences.
If you're considering joining the ranks of Columbia SC homebuyers but are not sure where to begin, give us a call or fill out our short contact form here on our site. We're always available to sit down and discuss your moving plans with you and help you find the right neighborhood for your lifestyle and desires.
Last year, we got predictions from Wall Street experts and people on Main Street about what was going to happen to the stock market, oil prices, and housing prices.
So who was smarter, the experts, or people on the street. Let's see who was right…
When it comes to buying Columbia SC homes, first-time buyers, the millennial generation, falls under the "prime" home buying demographic. Unfortunately, many millennials also fall into another, less desirable, category: adult children. An adult child is a term that's caught on recently, and simply refers to adults roughly between ages 18 and 30 who still live at home with their parents, or are still dependent on their parents for their living arrangements.
Homeownership among prime home buyers has dropped 11% from 1980 to 2012. Some would argue the statistics are skewed, because many 19-24 year olds are still in school and not financially able to live on their own – but that's not the point. Many adults who fall into that 18-30-year-old range are considered prime candidates for homeownership, yet over 50% choose to live with their parents or rent. Ideally they should be buying. What's holding them back?
Problems Keeping Millennials From Buying Columbia SC Homes
Jobs – Even with talk of the job market turning around, there are still over 9 million people unemployed. This leads to more young adults either struggling to find jobs, or taking part-time jobs with less pay. Either situation makes it much harder to save up for buying Columbia SC homes.
Debt – If you don't have that job, saving becomes very difficult, if not impossible. But it's even harder when there's student loan debt piling up on top of everything else. According to CNN, the average student's post-college debt is anywhere from $25,000 to $29,000. This becomes a huge problem when trying to save for buying a Columbia SC home. One of the main factors of being a prime home buyer is also having a college education, which is associated with higher income and, unfortunately, student loan debt.
Lifestyle – Low employment and high student loan debt numbers are forcing millennials to make lifestyle changes as well. CNN projects the millennial generation to have the lowest rates of marriage by age 40 compared to any generation. This is important because marriage and family tend to need larger living space. The two points above (employment and debt) have a huge impact on that, too.
This is where millennials really need to step it up. The job market does show signs of recovering over the next couple of years and, hopefully, millennials will find more opportunities for buying Columbia SC homes.
Until it does, millennials who have goals of homeownership, should try and save whatever money they can. It's important for them to start building up credit by paying off loans and being on time with payments. Even if millennials continue to live at home, those two takeaways are a step in the right direction, and will help them be able to eventually buy homes.
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