08/12/2026
Have you ever heard of “The Starbucks Effect?” No, it's not about how many lattes are standing between you and a down payment. 😅
Essentially, it says this: homes within a quarter mile of a Starbucks increased in value by 96% between 1997 and 2014. The national average over that same period was 60%.
But here's the part I find really interesting - it's not the coffee shop that causes the increase. Starbucks has a whole real estate team whose entire job is to identify neighborhoods already showing signs of growth. Their analysts are doing masterclass-level economic and demographic research to determine up-and-coming areas before anyone else does.
So when a Starbucks shows up, it's less of a cause and more of a confirmation. The neighborhood was already on its way up - and now you have proof. In fact, some real estate agents, builders, and investors watch out specifically for building permits from Starbucks as a sign of where to take a closer look.
That being said, Starbucks also closed 400 locations in 2025. Analysts are starting to ask the question in reverse. If a Starbucks moving in signals a neighborhood on the rise, what does a Starbucks moving out signal?
The consensus so far is that one closure probably won't move the needle. But two or more in the same area is probably worth paying attention to.
Okay, enough real estate talk. What’s your go-to order? No judgment here, mine is Pistachio latte with almond milk. We're all just out here making financially questionable coffee decisions together. ☕
- Lily
(346) 375-5255
