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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The smaller mom and pop places are nicer.
And there are a lot of other “Starbucks” popping up filling the same niche.
And there are Starbucks in places I would hardly consider “upscale” areas...they’re not dumps, either...but hardly elite, wealthy areas.
People don't frequent SB for the coffee, but for the atmosphere. A serene oasis with nice decor and free WiFi.
But in recent years the SBs near me have become a combination homeless shelter/kennel/daycare center. Full of smelly homeless, lots of "service dogs," and tons of teenagers.
I knew to avoid one of the larger SBs from 2 to 6 p.m. on weekdays, because it filled up with 50 or more unruly teenagers, screaming and yelling, talking, laughing, phoning, and just hanging out.
That was one of the ones they closed.
It could have been a tough lease contract. That happens around my area, lots of business parks are owned by very sharky landlord corps, and they have performance based leases, that go up every year based on sales, and the business can’t keep expanding the customer based because of its capacity....so after 2-3 years the lease is suffocating the business, and they have to shut down....no problem for the landlord, they have a wait-list of other businesses, and they start the whole cycle over. Only the absolute best businesses can manage to beat the performance based leases ... usually one or two business tenants remain, and many suites in a building remain vacant for years.
Yep.
It is like if you see a strip mall with a Payday Loan, a Tattoo Parlor, a Phone Store anchored by a Party Store you are not looking at a upscale neighborhood. Keep your doors locked and stay inside the vehicle.
If you see a strip mall with a thrift store, a dollar store, a McDonalds and a storage place it is struggling but you are usually safe.
The stores reflect what the area is, they do not make it.
Oh give me a break…
Unbelievable BS!
This reminds me of Trump-haters assuming everyone in the room hates Trump.
Starbucks fans think everyone wishes they had a Starbucks nearby - so much so that proximity to one drives up home values.. delusional.
The high priced homes around here aren’t near anything commercial - they are near country clubs and land trusts.
“I drink a lot of coffee, i have for decades. I’ve never spent one dime at Starbucks.”
I have been in Starbucks twice, and only due to social situations. Now they are contracting, their business model is kaput. The stupid Scamdemic beat the stuffing out of many businesses, including that immigrant go to, restaurants.
Product left out in front of grocery stores.
StarSucks
Burglar bars on the windows and doors.
BS
Any couple ought to be looking at property taxes and what’s been going on with assessments.
Here in my neck of the Upstate NYS there are people paying in the mid to high four figures annually for a 2,000 st ft or less existing home.
We know folks whose assessments have gone up double digits in the last three years.
I don’t live in a area with economic growth.
When I see a Starbucks or Whole Foods, I immediately think of an influx of Karens.
The real problem is when the Starbucks is replaced with a “Boost Mobile” or “Pay Day Loan” outlet.
Oh heck ya, just having a Star*ucks , or 2,3,6 in the neighborhood immediately increases the value of the homes…….what a crock of old used coffee grounds.
that’s racist...
“ But, which came first? The Starbucks or the affluent neighborhoods?”
I would imagine that as a business, Starbucks took a few risks, opening stores in neighborhoods they thought were trending up. After a few years, some of those places didn’t pan out, so they closed the losers.
Happens all the time. Don’t take it personally, or see Starbucks as a social driver.
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