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 ...
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I have three a mile away each direction.
There are too many.
“Hey! This is a nice neighborhood. They pay ridiculous prices for mediocre coffee.”
I see it differently.
Starbucks and Whole Foods, are inflationary, causing property values to rise, making homes unaffordable to the less affluent.
So, as Starbucks and Whole Foods close stores, the corresponding neighborhoods become more affordable.
But, which came first? The Starbucks or the affluent neighborhoods?
I see Starbucks as making neighborhoods less attractive, with those being all over the place. Take those eyesores away, and the neighborhoods become more attractive.
BTW, I like coffee, but not Starbucks coffee. I prefer McDonald’s coffee, which is cheaper and better.
Chicken and egg...
You are a young couple looking to buy a new home.
Neighborhood A has a check cashing store, a marijuana dispensary, and a Dollar General within walking distance.
Neighborhood B has a Bank of America branch, a Starbucks, and a Whole Foods.
Which neighborhood has the higher priced homes?
Which do you think the young couple would prefer?
I do economic development for my city. It is always a juggling act, trying to get home developers AND support/quality of life businesses like supermarkets, banks, restaurants, etc., to move in AT THE SAME TIME. The housing people don’t trust the commercial developers and vice versa. Don’t even get me started on attracting new industry.
I drink a lot of coffee, i have for decades. I’ve never spent one dime at starbucks.
Well, it’s correlation rather than causation. Few if any home buyers are selecting an abode based on its proximity or lack thereof to a Starbucks. But SBUX shutting down in a neighborhood is indicative that the neighborhood isn’t thriving. Seems like common sense more than anything else.
Starbucks is a visual dog whistle for leftists.
If anything there should be an inverse correlation -the closer to a Fivebucks you are, the greater the density of hipsters, thus property values should decline.
Or maybe the home prices were rising because those neighborhoods were filled with people who could afford to piss away $8 on a cup of burnt coffee.
In San Francisco, I could show you a $9 million home maybe 600 feet from a weed dispensary, but that’s San Francisco. Overall, your point is correct.
What they prefer would be situational and subjective to the particular young couple.
Same here.
I think they got the cause and effect backwards.
Exactly.
Reminds me of that couple from the movie "Best in Show" and how they met each other.
I just look at yoga pants lol.
What is killing Starbucks is the unionization initiative. The more money their employees feel entitled to, the ROI for having a Starbucks goes down. Cheaper to close than to give in. Now people who bought homes at premium in the up and coming area see property values drop.
Thanks for the tip!
The ONLY time we stop at Starbutts is when I have run out of Mountain Dew, and there is no other choice. Starbutts regular brew is Pikes, and crap. I get a laaaaarge iced coffee with extra shots.
Life is too short for decaf.
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