Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

How the downfall of Starbucks is destroying the housing market: 'This isn't just about coffee'
Daily Mail ^ | October 11, 2025 | Martha Williams

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 ...


TOPICS: Business/Economy; Culture/Society; News/Current Events
KEYWORDS: dunkindonuts; housingmarket; starbucks; wholefoods; zillow

Click here: to donate by Credit Card

Or here: to donate by PayPal

Or by mail to: Free Republic, LLC - PO Box 9771 - Fresno, CA 93794

Thank you very much and God bless you.


Navigation: use the links below to view more comments.
first previous 1-2021-4041-58 last
To: jmaroneps37

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.


41 posted on 10/11/2025 12:01:41 PM PDT by Republican Wildcat
[ Post Reply | Private Reply | To 6 | View Replies]

To: cuban leaf
Starbucks must be an addiction.

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.

42 posted on 10/11/2025 12:02:40 PM PDT by Angelino97
[ Post Reply | Private Reply | To 10 | View Replies]

To: CondoleezzaProtege

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.


43 posted on 10/11/2025 12:10:48 PM PDT by pacificus
[ Post Reply | Private Reply | To 12 | View Replies]

To: jmaroneps37
The writer has it backwards. The neighborhood made Starbucks not the other way around.

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.

44 posted on 10/11/2025 12:13:03 PM PDT by Harmless Teddy Bear (It's like somebody just put the Constitution up on a wall …. and shot the First Amendment -Mike Rowe)
[ Post Reply | Private Reply | To 6 | View Replies]

To: Angelino97

Oh give me a break…


45 posted on 10/11/2025 12:25:47 PM PDT by enumerated (81 million votes my ass)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Angelino97

Unbelievable BS!


46 posted on 10/11/2025 12:28:29 PM PDT by SuperLuminal (Where is rabble-rising Sam Adams now that we need him? Is his name Trump, now?)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Angelino97

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.


47 posted on 10/11/2025 12:43:36 PM PDT by enumerated (81 million votes my ass)
[ Post Reply | Private Reply | To 1 | View Replies]

To: exnavy

“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.


48 posted on 10/11/2025 12:53:18 PM PDT by dennisw (There is no limit to human stupidity )
[ Post Reply | Private Reply | To 25 | View Replies]

To: cuban leaf

Product left out in front of grocery stores.


49 posted on 10/11/2025 12:54:24 PM PDT by Seruzawa ("The Political left is the Garden of Eden of incompetence" - Marx the Smarter (Groucho))
[ Post Reply | Private Reply | To 13 | View Replies]

StarSucks


50 posted on 10/11/2025 1:35:30 PM PDT by TnTnTn
[ Post Reply | Private Reply | To 4 | View Replies]

To: cuban leaf

Burglar bars on the windows and doors.


51 posted on 10/11/2025 1:45:06 PM PDT by decal (They won't stop, so they'll have to be stopped)
[ Post Reply | Private Reply | To 13 | View Replies]

To: Angelino97

BS


52 posted on 10/11/2025 1:49:19 PM PDT by ridesthemiles (not giving up on TRUMP---EVER)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Crusher138

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.


53 posted on 10/11/2025 2:00:19 PM PDT by mewzilla (Swing away, Mr. President, swing away! 🇺🇸 🏴󠁧󠁢󠁥󠁮󠁧󠁿)
[ Post Reply | Private Reply | To 24 | View Replies]

To: Angelino97

When I see a Starbucks or Whole Foods, I immediately think of an influx of Karens.


54 posted on 10/11/2025 2:21:41 PM PDT by bort
[ Post Reply | Private Reply | To 1 | View Replies]

To: Angelino97

The real problem is when the Starbucks is replaced with a “Boost Mobile” or “Pay Day Loan” outlet.


55 posted on 10/11/2025 3:54:49 PM PDT by Dr. Sivana ("Whatsoever he shall say to you, do ye." (John 2:5))
[ Post Reply | Private Reply | To 1 | View Replies]

To: Angelino97

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.


56 posted on 10/11/2025 3:59:14 PM PDT by Mastador1
[ Post Reply | Private Reply | To 1 | View Replies]

To: Angelino97

that’s racist...


57 posted on 10/11/2025 4:10:43 PM PDT by Dick Vomer ( (2 Timothy 4:7 "deo duce ferro comitantes" <p><b></B><P> <img src="">)
[ Post Reply | Private Reply | To 1 | View Replies]

To: adorno

“ 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.


58 posted on 10/11/2025 5:22:44 PM PDT by VanShuyten ("...that all the donkeys were dead. I know nothing as to the fate of the less valuable animals.”)
[ Post Reply | Private Reply | To 23 | View Replies]


Navigation: use the links below to view more comments.
first previous 1-2021-4041-58 last

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.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson