Posted on 10/11/2025 10:47:46 AM PDT by Angelino97
Starbucks just closed hundreds of locations, and while that's bad news for coffee drinkers, it could be even worse for the housing market...
This is because of the 'Starbucks effect' — the phenomenon where the coffee chain's presence is associated with rising property values and a perception of neighborhood affluence.
A Zillow study found that homes within a quarter-mile of a Starbucks appreciated far faster than those farther away — jumping 96 percent to $269,000 over 17 years, compared to a 65 percent rise to $168,000 for the average U.S. home — suggesting the coffee giant tends to move into neighborhoods on the rise...
the term also refers to how Starbucks sells a lifestyle — not just coffee. Its branding is aspirational, appealing to consumers who want a sense of comfort, community, and quality.
There is a similar concept tied to neighborhoods that have Whole Foods grocery stores.
When a Whole Foods opens in a neighborhood, property values and rents often rise. This is because the store signals a desirable, affluent area, attracting more upscale development and residents.
'Starbucks, like Whole Foods, has often been seen as a sign that a neighborhood has arrived,' Fort Lauderdale economist Michael Szanto told the Daily Mail.
A Zillow study found that homes near a Starbucks tend to rise in value faster than those farther away — suggesting the coffee chain often sets up shop in up-and-coming neighborhoods...
'Homes near Starbucks over 17 years appreciated at 96 percent. Homes near Dunkin' Donuts at 80 percent. And nationwide, home prices rose 65 percent,' Zillow's CEO Spencer Rascoff said.
With a grande latte now averaging around $6, the presence — and popularity — of Starbucks has become a shorthand for neighborhood affluence.
(Excerpt) Read more at dailymail.co.uk ...
I think McD’s uses “Newmans own” coffee which is very good
fat fingers from drinking all that coffee!
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.