The Starbucks Effect

The Starbucks Effect Hatem Alkhathlan, Sushmita Shekar, Ting Zhang

Geographic Information Systems (Fall 2019) Leah Meisterlin, Carsten C. Rodin

RESEARCH REPORT 1.0 Introduction and Background 2.0 Research Question, Hypothesis and Assumptions 3.0 Methodology 4.0 Analysis 5.0 Findings 6.0 Conclusion 7.0 Datasets and References

1.0

© Mark Makela/Getty Images

INTRODUCTION AND BACKGROUND

“We found that changes in the local economy— such as a new coffee shop opening—can predict gentrification,” -Harvard Business School’s Michael Luca, Lee J.

Starbucks is one of the largest coffee chains in America and their expansion is strategically determined by GIS analysis and extensive location and user based analysis of neighborhoods and cities. Zillow chief executive Spencer Rascoff and chief economist Stan Humphries, write that “Starbucks fuels gentrification and so is responsible for higher housing prices”1. Understanding the growth and establishment of Starbucks could be an early indicator that housing prices are about to spike or it could be used to understand that Starbucks and other cafe’s use gentrified neighborhoods for establishing new investment by increasing the prices further and causing displacement.

The aim of this project is to explore the census tracts having potential Starbucks stores and determining its relation to gentrification criteria like median Rent, median Income, Race and Educational attainment. The Starbucks stores will be studied at a gentrified neighborhood such as Harlem and Brooklyn within the and will be compared with the change of the city in the same period and census tracts adjacent to the study area. The locations will be studied over a time line of 5 years before and after 2013 and the pattern will be analyzed. A 10 minute walking radius will be considered for the boundary of the study. The Starbucks Effect is a new phenomenon which comments that properties in close proximity to a Starbucks actually appreciate much faster than those in less established neighborhoods, hence the research focuses on verifying this.

(1)Kasperkevic, Jana. “In Gentrified Cities Which Came First: Starbucks or Higher Real Estate Prices?” The Guardian, Guardian News and Media, 3 Feb. 2015, https://www.theguardian.com/money/us-money-blog/2015/feb/03/starbucks-gentrification-real-estate-prices

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0.25 0.5

Miles 1

US Cities with the largest number of Starbucks

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06

Chicago 184 stores

Seattle 133 stores

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Los Angeles 137 stores

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New York City 241 stores

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San Diego 141 stores

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Houston

148 stores

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Starbucks and Home Value 1997-2007

2007-2013

92%

139%

Near Starbucks

All Properties

67%

49%

The charts indicate that there is higher increase in percentage of home value between 1997 -2007 with the presence of Starbucks in the vicinity (10 minutes walking radius)

Starbucks Store Opening Data 2005

2007 2010 2013 2016 2019

7353

11131 10648

11475 13173 15041

The charts represents the total number of Starbucks stores opened in United States between 2005-2019

2.0

© Reuters

RESEARCH QUESTION HYPOTHESIS ASSUMPTIONS

RESEARCH QUESTION What are the patterns of establishment and growth of Starbucks in relation to neighborhood characteristics?

Is there a change in any of the gentrification criteria -median rent, median income, educational attainment and displacement of black population and in the neighborhood before and after the entry of Starbucks into a locality? What is the area of the impact?

Can the entry of Starbucks in a location be an indicative of gentrification?

HYPOTHESIS The intent of the project focuses on understanding the role of GIS in predicting changes or the growth of a neighborhood. While our focus is on measurement and prediction, our results also suggest that businesses respond to exogenous changes in neighborhood composition.

Gentrification has a wide range of parameters that influence change,for example transport infrastructure, public projects and commercial development. Hence Starbucks stores located at gentrified census tracts were studied and compared with New York city wide data to draw inferences and the criteria is based on four parameters median income, median rent, educational attainment and racial change.

ASSUMPTIONS The gentrification criteria includes four parameters- Median rent, median income, educational attainment and racial change, the assumption made is that a potential change in these parameters can quantify gentrification. The challenge also lies in determining a timeline of the study. To identify whether a 5 year before and after timeline will be ideal to quantify gentrification or changes in a neighborhood. Defining an area or boundary of study might be hard to establish, hence the census tracts which lie within a 10 minute walkable distance from the Starbucks is used for the study.

3.0

METHODOLOGY

Data Collection

Starbucks Location Coordinates

Data Preparation

Display Coordinates

Scripted From Starbucks Website

Table From Website

All Starbucks in NYC & Part of Starbucks with Opening Dates

LION Single Line Street

Network Analysis

NYC Borough Boundary

Crop

2017 ACS 5-Year Estimates

Table Join

NYC Census Tract

Starbucks Walkable Distance Boundary 1 / 2 / 5 / 10 minutes

Starbucks Thiessen Polygons

Since there is a different density of Starbucks in NYC, we use different walkable distance boundary as their service areas according to Thiessen Polygons

2009&2017

2009 ACS 5-Year Estimates

NYC Census Tract

Table Join

Population / Median Household Income / Median Gross Rent / Educational Attainment / Race Ratio

Each Starbucks Service Area in different walkable distance

Union

NYC Starbucks Service Area Union

Census Tract Centroid

Select By Location

NYC Starbucks Serving Population

Union, Select By Location, Field Calculation, Table Join...

Table Join

Starbucks Data

Create Thiessen polygons

Starbucks Opening Dates Of The World

Starbucks Pattern in NYC Define Study Area Of Starbucks

Characteristics of the neighborhoods with Starbucks

Starbucks & Gentrification Analysis Identifying gentrified neighborhoods in NYC according to the criteria from the reference

Median Income Census Tract 2017

Median Gross Rent Census Tract 2017

Educational Attainment Census Tract

Eligibility 2009

Population >500 Median Home value >40th percentile Median Household Income >40th percentile

Change 2009-2017

Increase in Median Home Value > 60th percentile Increase in Educational Attainment > 60th percentile Increase in Median Household Income > when adjusted for inflation

2017

Race Ratio Census Tract 2017

Displacement 2009-2017

5% decline in population of racial /ethnic group Decline in % of population of more than two SD from National mean

Identified Gentrified Census Tract

Harlem

Brooklyn

Change of Median Household Income / Median Gross Rent / Educational Attainment / Race Ratio

Change of Median Household Income / Median Gross Rent / Educational Attainment / Race Ratio

4.0

© Reuters

ANALYSIS

4.1 Starbucks locations Distribution and Walkability analysis.

4.2 Starbucks Service Area with Population 4.3 Starbucks locations in relation to neighborhood characteristics.

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STARBUCKS LOCATIONS ! !

DISTRIBUTION AND WALKABILITY ANALYSIS !

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Thiessen polygons are generated from Starbucks points such that each polygon defines an area of influence around its sample Starbucks, ! so that ! any location inside the polygon is closer to that Starbucks than any of the other. Compare it to the !! !! network analysis of the Starbucks in NYC, We see a concentration of Starbucks in midtown, downtown Manhattan and Dumbo Brooklyn, where there is one Starbucks within every 1min walkable distance, ! while in uptown and other ! waterfront! areas, the ! boundaries extend to 2 - 5 min walkability. !

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Starbucks !

Thiessen Polygon Walking Distance

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<660 ft

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<1980 ft

5 min

<2640 ft

10 min

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Miles 4

4.2

STARBUCKS SERVICE AREA WITH POPULATION

Starbucks serves approximately 32% of the NYC overall population. Most Starbucks located in the census tract which has a relative higher population, but there is still some dense neighborhood which there is no Starbucks.

32%

Starbucks Service Area Population 0 - 2600 2601 - 4393 4394 - 6622 6623 - 10500 10501 - 28937

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4.3 STARBUCKS LOCATIONS IN RELATION TO MEDIAN INCOME

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56900

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Starbucks Census tracts in relation to median income range:

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Of Starbucks census tracts lie with median income range of 56900-119300 dollars compared to New York City median income of 60,765 dollars

50%

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Median Income / dollars

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Starbucks location 0-33500 !

33501-56900

56901-81300 ! !

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81301-119300 119301-233700

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Miles 4

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4.3 STARBUCKS LOCATIONS IN RELATION TO

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Starbucks Census tracts in relation to median rent range:

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42

min

700

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2800

2100

1400

31 3500

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Of Starbucks census tracts lie with median rent range of 1400-2800 dollars compared to New York City median income of 1194 dollars

49%

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Median Rent /dollars

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Starbucks location 0-700 701-1400 1401-2100 2101-2800 2801-3500

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4.2 STARBUCKS LOCATIONS IN RELATION TO POPULATION DENSITY

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Starbucks census tracts in relation to population density:

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111 2600

min

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4300

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6600

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10500 29000

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of Starbucks census tracts lie with population change of 2600-6600 people compared to New York Cityâ&#x20AC;&#x2122;s population of 19,542,209

59%

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Population Change

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4.2 STARBUCKS LOCATIONS IN RELATION TO EDUCATIONAL ATTAINMENT

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Starbucks Census tracts in relation to Educational Attainment:

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min

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30 111 40

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of Starbucks census tracts lie with census tracts having education attainment range of 60-100 compared to New Yorks range of 20.8%

68%

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Educational Attainment

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© Reuters

FINDINGS

GENTRIFICATION CRITERIA

+ Median Rent

+ Median Household Income

+ Race

+ College Graduates

PROCESS Gentrification is a process of neighborhood change that includes economic and demographic change in a historically dis-invested neighborhood â&#x20AC;&#x201D;by means of real estate investment and new higher-income residents moving in - not only in terms of income level, but also in terms of changes in the education level or racial make-up of residents.

In this section, we are examining the correlation between gentrification and the impact of opening a Starbucks location. We are looking at data from 2009 to 2017, Starbucks stores opened around the period of study.

By using the criteria and methods from Governing.com, we have identified the gentrified tracts that moved from the bottom 40th percentile for median rent and median household income to the top 60th percentile, for residents holding a bachelorâ&#x20AC;&#x2122;s degree or higher, and for tracts that has more than 500 population.

1- Eligible tracts determined by tracts which are below the 40th percentile in both median household income and median rent. In addition, the tract must has 500 population or greater at the beginning of the period which is 2009.

2- Possible gentrification is determined by including all eligible tracts and then identifying tracts that were in the top 60th percentile for increases in both median income and median rent, in addition to the percentage of college graduates.

3- The census tracts meeting all of the above listed criteria were identified as undergoing, or having undergone, gentrification base on the criteria and method that was used.

Legend

Rent_Change

Change -100.000000 - 50.000000 50.000001 - 75.000000 75.000001 - 100.000000 100.000001 - 200.000000 200.000001 - 471.074380 Race_Gen Gentrifide_Merge Gent_Inc_Race_Rent

Gent_Median_Gross_Rent

Per_Change

!

!

26.391016 - 25.000000 25.000001 - 50.000000 50.000001 - 75.000000 75.000001 - 100.000000 100.000001 - 104.567308 Gent_Race5p_HousholdIncome Gent_Race_Above5Perc Gentrifide NYC_CensusTract selection 3 Gent_St NYC_CensusTract selection 2 NYC_CensusTract selection Starbucks_NYC_Clean Starbucks_NYC_OpenDateAvailable_Format

Export_Output

09_17w_

-100.000000 - -28.979592 -28.979591 - 5.000000 5.000001 - 37.168142 37.168143 - 155.238095 155.238096 - 266.037736

Race

Black_09_13

PROCESS OF IDENTIFYING GENTRIFIED TRACTS

0 - 33 34 - 92 93 - 171 172 - 263 264 - 360 361 - 457 458 - 559 560 - 694 695 - 856 857 - 1028 1029 - 1237 1238 - 1561 1562 - 2091 2092 - 3061 3062 - 7240

Race_2009to2013_2013to2017

White_09 0 - 258 259 - 542 543 - 1134 1135 - 2100 2101 - 4053

Household_Income

Change -100.000000 - 50.000000 50.000001 - 75.000000 75.000001 - 100.000000 100.000001 - 250.000000 250.000001 - 457.030402

Household_Income

09Income 0 - 15000 15001 - 50000 50001 - 75000 Legend

Legend

Rent_Change

Rent_Change

Change

Change

Gent_Median_Gross_Rent

Gent_Median_Gross_Rent

Gent_Median_Gross_Rent

Per_Change

Per_Change

Per_Change 1211 - 1553

!

!

26.391016 - 25.000000 25.000001 - 50.000000 50.000001 - 75.000000 75.000001 - 100.000000 100.000001 - 104.567308 Gent_Race5p_HousholdIncome Gent_Race_Above5Perc Gentrifide NYC_CensusTract selection 3 Gent_St NYC_CensusTract selection 2 NYC_CensusTract selection Starbucks_NYC_Clean Starbucks_NYC_OpenDateAvailable_Format

09_17w_

-100.000000 - -28.979592 -28.979591 - 5.000000 5.000001 - 37.168142 37.168143 - 155.238095 155.238096 - 266.037736

Race

Black_09_13

Median Gross Rent <40th percentile 0 - 33 34 - 92 93 - 171 172 - 263 264 - 360 361 - 457 458 - 559 560 - 694 695 - 856 857 - 1028 1029 - 1237 1238 - 1561 1562 - 2091 2092 - 3061 3062 - 7240

!

!

-100.000000 - 50.000000 0 - 15000 50.000001 - 75.000000 15001 - 50000 75.000001 - 100.000000 50001 - 75000 100.000001 - 200.000000 75001 - 120000 200.000001 - 471.074380 120001 - 230000

Race_Gen Median_Gross_Rent

Gentrifide_Merge Gent_Inc_Race_Rent 0 - 643 644 - 1210

17Rent

26.391016 - 25.000000 25.000001 - 50.000000 50.000001 - 75.000000 75.000001 - 100.000000 100.000001 - 104.567308 Gent_Race5p_HousholdIncome Gent_Race_Above5Perc Gentrifide NYC_CensusTract selection 3 Gent_St NYC_CensusTract selection 2 NYC_CensusTract selection Starbucks_NYC_Clean Starbucks_NYC_OpenDateAvailable_Format

26.391016 1554 - 2141- 25.000000 25.000001 2142 - 3500- 50.000000

50.000001 - 75.000000 Median_Gross_Rent

75.000001 - 100.000000 100.000001 - 104.567308 -1770.000000 - 113.000000 Gent_Race5p_HousholdIncome 113.000001 - 441.000000 Gent_Race_Above5Perc 441.000001 - 988.000000 Gentrifide 988.000001 - 2002.000000 NYC_CensusTract selection 3 2002.000001 - 3500.000000 Gent_St Median_Gross_Rent NYC_CensusTract selection 2 09Rent NYC_CensusTract selection 0 - 284 Starbucks_NYC_Clean 285 - 775 Starbucks_NYC_OpenDateAvailable_Format 776 - 1105 Export_Output 1106 - 1446 09_17w_ 1447 - 2000 -100.000000 - -28.979592 NYC_CensusTract -28.979591 - 5.000000 5.000001 - 37.168142 37.168143 - 155.238095 155.238096 - 266.037736

09_17

!

!

Export_Output

09_17w_

-100.000000 - -28.979592 -28.979591 - 5.000000 5.000001 - 37.168142 37.168143 - 155.238095 155.238096 - 266.037736

Race

Black_09_13

>500 Population 0 - 33 34 - 92 93 - 171 172 - 263 264 - 360 361 - 457 458 - 559 560 - 694 695 - 856 857 - 1028 1029 - 1237 1238 - 1561 1562 - 2091 2092 - 3061 3062 - 7240

Race

Increase In Median Gross Rent >60th percentile

Black_09_13

Increase In College Educated >60th percentile 0 - 33 34 - 92 93 - 171 172 - 263 264 - 360 361 - 457 458 - 559 560 - 694 695 - 856 857 - 1028 1029 - 1237 1238 - 1561 1562 - 2091 2092 - 3061 3062 - 7240

Race_2009to2013_2013to2017

Race_2009to2013_2013to2017

Race_2009to2013_2013to2017

White_09

White_09

White_09

0 - 258 259 - 542 543 - 1134 1135 - 2100 2101 - 4053

0 - 258 259 - 542 543 - 1134 1135 - 2100 2101 - 4053

0 - 258 259 - 542 543 - 1134 1135 - 2100 2101 - 4053

Household_Income

Household_Income

Household_Income

Change

Change

Change

-100.000000 - 50.000000 50.000001 - 75.000000 75.000001 - 100.000000 100.000001 - 250.000000 250.000001 - 457.030402

-100.000000 - 50.000000 50.000001 - 75.000000 75.000001 - 100.000000 100.000001 - 250.000000 250.000001 - 457.030402

-100.000000 - 50.000000 50.000001 - 75.000000 75.000001 - 100.000000 100.000001 - 250.000000 250.000001 - 457.030402

Household_Income

Household_Income

Household_Income

09Income

09Income

09Income

0 - 15000 15001 - 50000 50001 - 75000 75001 - 120000 120001 - 230000

0 - 15000 15001 - 50000 50001 - 75000 75001 - 120000 120001 - 230000

0 - 15000 15001 - 50000 50001 - 75000 75001 - 120000 120001 - 230000

Household_Income

Household_Income

Household_Income

17Income

17Income

17Income

0 - 15000 15001 - 50000 50001 - 75000 75001 - 120000 120001 - 230000

0 - 15000 15001 - 50000 50001 - 75000 75001 - 120000 120001 - 230000

0 - 15000 15001 - 50000 50001 - 75000 75001 - 120000 120001 - 230000

Median_Gross_Rent

Median_Gross_Rent

Median_Gross_Rent

17Rent

17Rent

17Rent

0 - 643 644 - 1210 1211 - 1553 1554 - 2141 2142 - 3500

0 - 643 644 - 1210 1211 - 1553 1554 - 2141 2142 - 3500

0 - 643 644 - 1210 1211 - 1553 1554 - 2141 2142 - 3500

Median_Gross_Rent

Median_Gross_Rent

Median_Gross_Rent

09_17

09_17

09_17

-1770.000000 - 113.000000 113.000001 - 441.000000 441.000001 - 988.000000 988.000001 - 2002.000000 2002.000001 - 3500.000000

-1770.000000 - 113.000000 113.000001 - 441.000000 441.000001 - 988.000000 988.000001 - 2002.000000 2002.000001 - 3500.000000

-1770.000000 - 113.000000 113.000001 - 441.000000 441.000001 - 988.000000 988.000001 - 2002.000000 2002.000001 - 3500.000000

Median_Gross_Rent

Median_Gross_Rent

Median_Gross_Rent

09Rent

09Rent

09Rent

0 - 284 285 - 775 776 - 1105 1106 - 1446 1447 - 2000 NYC_CensusTract

Median Household Income

Change 17Income

-100.000000 - 50.000000 50.000001 - 75.000000 75.000001 - 100.000000 100.000001 - 200.000000 200.000001 - 471.074380 Race_Gen Gentrifide_Merge Gent_Inc_Race_Rent

Export_Output

Median Gross Rent

75001 - 120000 Legend 120001 - 230000

Rent_Change Household_Income

-100.000000 - 50.000000 50.000001 - 75.000000 75.000001 - 100.000000 100.000001 - 200.000000 200.000001 - 471.074380 Race_Gen Gentrifide_Merge Gent_Inc_Race_Rent

Median Rent Value <40th percentile

0 - 284 285 - 775 776 - 1105 1106 - 1446 1447 - 2000 NYC_CensusTract

>500 Population

0 - 284 285 - 775 776 - 1105 1106 - 1446 1447 - 2000 NYC_CensusTract

Increase In Median Rent Value >60th percentile

Increase In College Educated >60th percentile

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IDENTIFYING GENTRIFIED NEIGHBORHOODS

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Starbucks Locations

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Identified Gentrified Tracts.

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1

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Miles 4

NEIGHBORHOODS GENTRIFIED AFTER OPENING STARBUCKS

Selecting Starbucks opened between 2010 and 2012, we see a overlapping between the Starbucks service area and the identified gentrified neighborhoods. Of the 20 Starbucks opened at that time, 17 Starbucks located in gentrified neighborhoods, which shows that after the Starbucks opened, there is a gentrification happening.

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Starbucks Opened Between 2010 - 2012 Service Area

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Miles 4

IDENTIFYING THE STUDY SITES In this map we are looking at the Starbucks stores which are located inside the identified gentrified tracts and were opened in the study period. Two sites were chosen to examine from these locations, the first site is located in Harlem, Manhattan, and another site located around downtown Brooklyn.

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The study area of the sites were defined by the walkability analysis, ! which means site 2 has a larger study area because it has two Starbucks opened in the study areas and has overlapped walkability reach.

SITE 1 - MANHATTAN ! - HARLEM

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Starbucks Opening Date:

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5/22/08

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SITE 2 - BROOKLYN

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Starbucks Opening Date: 6/30/12 and 9/24/13

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SITE 1 - MANHATTAN - HARLEM

Percentage of Change In Median Rent From 2009 to 2017 +100%

The second site is located in Manhattan, Harlem, which has one Starbucks stores opened in May 2008, in addition to 3 oth-

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er stores opened before the study period 2009-2017.

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75% to 50.1

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This study area saw an increase of median rent from 2009 to

100% to 75.1

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2017 by %35, a change from $812.2 to $1,244. The Median in-

50% to 25.1

come also has increased drastically by %36, from $42,402 to $58,107. The percentage of residents age 25 and over holding

25% to 0

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bachelorâ&#x20AC;&#x2122;s degrees increased moderately by %15.70, and the percentage white population has increased by %19.64 while the black population has increased too by %5.69.

Percentage of Change In Median Income From 2009 to 2017 100% to 75.1

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75% to 50.1

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50% to 25.1

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36.03

31.49

25% to 0

%

%

Increase in Median Rent

Increase in Median Income

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< -0%

Percentage of Change In White Population From 2009 to 2017 100% to 75.1

15.7

19.64

%

%

Increase in Education of bachelorâ&#x20AC;&#x2122;s degree or higher

Increase in White Population

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75% to 50.1

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50% to 25.1

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+ .

25% to 0

Established Starbucks in the study period. (2009-2017) Established Starbucks before/after study period.

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< -0%

Identified Gentrified Tracts.

Starbucks Boundary (Voronoi diagram) Identified Gentrified Tracts from 2009 to 2017 & Starbucks Locations

Percentage of Change In Higher Education From 2009 to 2017 +100%

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100% to 75.1

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75% to 50.1

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Starbucks Opening Date:

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0.0275 0.055

Miles 0.11

25% to 0

SITE 2 - BROOKLYN

Percentage of Change In Median Rent From 2009 to 2017 +100%

The first site that we chose to examine is located in Brook-

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100% to 75.1

lyn, which has two Starbucks stores opened in June 2012 and September 2013, located 0.43 Miles from each other,

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in addition to 12 other stores opened before the study

75% to 50.1

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period 2009-2017.

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50% to 25.1

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This study area saw q drastic increase in median rent from 2009 to 2017 by %48, it increased from $1,135 to &2,000.

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The Median income also has increased by %41, from

25% to 0

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$65,521 to $11,0191. The percentage of residents age 25 and over holding bachelorâ&#x20AC;&#x2122;s degrees jumped to %61.68,

Percentage of Change In Median Income From 2009 to 2017

and the percentage white population has increased by %9.91, while the black population decreased by % -58.53.

100% to 75.1

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50% to 25.1

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48.15

41.13

%

25% to 0

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%

Increase in Median Rent

Increase in Median Income

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< -0% ! !

Percentage of Change In White Population From 2009 to 2017 100% to 75.1

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61.68

9.91

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75% to 50.1

%

%

Increase in Education of bachelorâ&#x20AC;&#x2122;s degree or higher

Increase in White Population

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50% to 25.1

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25% to 0

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+ .

Established Starbucks in the study period. (2009-2017) Established Starbucks before/after study period.

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< -0%

Identified Gentrified Tracts. ! !

Starbucks Boundary (Voronoi diagram) Identified Gentrified Tracts from 2009 to 2017 & Starbucks Locations

Percentage of Change In Higher Education From 2009 to 2017 +100%

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Starbucks Opening Date:

25% to 0

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6/30/12

9/24/13

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0.0275 0.055

Miles 0.11

6.0

CONCLUSION

CONCLUSION The study was completed by looking at the Starbucks stores which were opened around the study period and located in tracts that fits the gentrification criteria. We tracked values of rent and median income in addition to the change of the educational attainment within 10 minutes walking distance of Starbucks.

Generally, most Starbucks located in Midtown and Downtown Manhattan are located within 1 minute walkable distance, while in the other part of the city, the service area can extend to 2 - 10 minutes walkable distance. By defining the study area of each Starbucks, 32% of the people in NYC can access to Starbucks.

The study of Starbucks stores in relation to median household income indicates Midtown and lower Manhattan have the largest concentration of stores and more than half (50%) lie between the income range of 56900-119300 dollars per household. Only 12% of stores lie in low income area where the income is less than 33500.When the relationship between Starbucks stores and median household rent was visualized ,nearly half lie between the rent range of 1400-2100 dollars per household. More than 59%of Starbucks lie in census tracts showing population change of 2600-6600 people. The store locations are concentrated in areas with high educational attainment which ranges between 60-100.

The first study site saw an increase from 2009 to 2017 in median rent and median income by 31.49% and 36.03%, while the change across the city was 26.58% and 14.97%. Furthermore, to compare the change with the to tracts slightly farther away, which located outside the study area and inside a 6,560 ft buffer, the area had an increase by 10.4% and 33.15%. In short, the tracts closest to Starbucks appreciated more than 21% in median income, and 2.88% in median rent compared to the increase to the tracts slightly farther away from the study area.

The second study site also saw an increase in the same period in median rent and median income by %48.15 and %41.13, while the change across the city was 26.58% and 14.97%. Comparing the change with the to tracts located outside the study area and inside a 6,560 ft buffer from Starbucks, the area had an increase by 42.81% and 38.60%. In short, the tracts closest to Starbucks appreciated more than 5.34% in median income, and 2.53% in median rent compared to the increase to the tracts slightly farther away from the study area.

SITE 1 Change from 09-17

Study Area

Census Tracts Adjacent To the Study Area

City

Median Rent

31.49%

10.40%

26.58%

Median Household Income

36.03%

33.15%

14.97%

Change from 09-17

Study Area

Census Tracts Adjacent To the Study Area

City

Median Rent

48.15%

42.81%

26.58%

Median Household Income

41.13%

36.60%

14.97%

SITE 2

7.0

DATASETS AND REFERENCES

DATASETS Starbucks Opening Dates Starbucks Opening Dates,Starbucks Everywhere, 4 Dec 201, http://www.starbuckseverywhere.net/StoreOpeningDates.htm.

Starbucks store locations “Starbucks®.” Starbucks, https://www.starbucks.com/store-locator?map=39.635307,-101.337891,5z.

2017 ACS 5-Year Estimates 2009 ACS 5-Year Estimates Median Income

Data Access and Dissemination Systems (DADS). “American FactFinder.” American FactFinder, 5 Oct. 2010, https://factfinder.census.gov/.

Median Rent

Data Access and Dissemination Systems (DADS). “American FactFinder.” American FactFinder, 5 Oct. 2010, https://factfinder.census.gov/faces/nav/jsf/pages/index.xhtml

Population density

Data Access and Dissemination Systems (DADS). “American FactFinder.” American FactFinder, 5 Oct. 2010, https://factfinder.census.gov/faces/nav/jsf/pages/index.xhtml

Race

Data Access and Dissemination Systems (DADS). “American FactFinder.” American FactFinder, 5 Oct. 2010, https://factfinder.census.gov/faces/nav/jsf/pages/index.xhtml

Educational Attainment Data Access and Dissemination Systems (DADS). “American FactFinder.” American FactFinder, 5 Oct. 2010, https://factfinder.census.gov/faces/nav/jsf/pages/index.xhtml

LION Single line Street Base Map LION Single Line Street Base Map, https://www1.nyc.gov/site/planning/data-maps/open-data/dwn-lion.page.

REFERENCES Kasperkevic, Jana. “In Gentrified Cities Which Came First: Starbucks or Higher Real Estate Prices?” The Guardian, Guardian News and Media, 3 Feb. 2015, https://www.theguardian.com/money/us-money-blog/2015/feb/03/starbucks-gentrification-real-estate-prices “The Starbucks Effect: Gentrification and The Best Investments.” Pierre Carapetian Group, 26 Apr. 2019, https://pierrecarapetian.com/starbucks-effect-gentrification-best-investments/.

Iversen, Kristin. “‘I’m Happy for the Gentrification’: On Starbucks and Sunset Park.” Brooklyn Magazine, Brooklyn Magazine, 22 Oct. 2015, http://www.bkmag.com/2015/10/22/im-happy-for-the-gentrification-on-starbucks-and-sunset-park/.

“Nowcasting Gentrification: Using Yelp Data to Quantify ...” Harvard Business School, 2018. https://www.hbs.edu/faculty/ Publication Files/18-077_a0e9e3c7-eceb-4685-8d72-21e0f518b3f3.pdf.