Starbucks, florists and other warning signs a neighborhood’s home prices are about to go up


Pictured Above:, People walk by the Starbucks coffee shop in the Bucktown neighborhood of Chicago. (Erin Hooley / Chicago Tribune)

There’s no chicken-or-egg dilemma here. A new Starbucks strongly predicted a jump in home prices, but rising home prices didn’t strongly predict where Starbucks is going to open a new location, according to their analysis, released in a new working paper from the National Bureau of Economic Research. Starbucks doesn’t follow the gentrifiers, it paves the way for them.

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