Earlier this year, several news organizations reported on a study that found that homes near a Starbucks increased in value at a rate higher than others during a fifteen year period. Did Starbucks cause this larger rise in home values?
The headlines seemed to suggest it had: “What Starbucks Has Done to American Home Values,” “Living Near a Starbucks Might Double Your Home’s Value” and “Starbucks Increases Neighborhood, Home Values”—all imply that the presence of Starbucks led to the increase in home value.
This story caught my eye for a number of reasons. While I’m not a coffee drinker, a new Starbucks just opened down the street (okay, about two miles down the street, so not that close) but if its presence further increased our home values that would be a plus. But more to the point, it drew my attention as a sociologist. The headlines seem to confuse causation with correlation, assuming that one variable had a direct impact on the other, rather than coinciding with a number of other factors that come along with the decision to open a new Starbucks.