A Craft Brewery in the Neighborhood May Increase the Value of Your Home
If you like beer, there’s nothing better than finding out that an awesome new craft brewery has opened up near your house. But even if you don’t like beer, there’s still apparently reason to get excited as long as you like money: A new study suggests that local craft breweries are able to increase the value of your home.
The study from Neil Reid at the University of Toledo and Isabelle Nilsson at the University of North Carolina at Charlotte used data from the city of Charlotte to gauge “the relationship between craft breweries and property values,” as the paper’s title states. The result: The relationship is a good one.
Single-family homes saw their value increase by nearly 10 percent after a brewery opened within a half mile of the property, and center-city condos got a nearly 3-percent bump. Oddly enough, the report found no significant impact on commercial property, meaning homeowners were reaping all the benefits.
“Being able to walk to a craft brewery in the evening or late afternoon on the weekend is considered a positive amenity that would — for some people — be attractive when looking at a house,” Reid, a professor of geography and planning, explained. “There is a different attitude toward a craft brewery. It's perceived differently than a liquor store or bar.”
The study, which looked at properties sold between 2002 and 2017, found that many breweries opened in areas that already had more expensive housing, and yet these breweries were still able to add to this pre-existing premium.
But though this news may prove positive for homeowners, Nilsson — an assistant professor in the Department of Geography and Earth Sciences — offered an even larger takeaway for government officials who might not realize the power of a craft brewery. “These results are informative to policymakers considering revising zoning laws and other regulations in efforts to promote the growth of craft breweries and spur economic development in their local economies,” she stated.
“This new research shows that craft breweries contribute to increased property tax revenues for local governments, in addition to job creation and aiding neighborhood revitalization efforts,” Reid added. “However, the effects to residential property values may not be as significant in places with higher rates of vacancies and lower population growth, as well as in more established cities such as Chicago or New York.”