HOUSTON \u2013 Across Houston, many businesses say sales have steadily increased over the past year. <\/p>\n
But for some owners, that growth is being offset by rising costs that are making it harder to stay open.<\/p>\n
In neighborhoods like Montrose, longtime businesses are feeling the pressure from higher supply prices, staffing costs, and rent concerns, even as new developments continue to reshape the area.<\/p>\n
At Little Dreamer Coffee, owner Matthew Toomey says business has been encouraging, but expenses keep climbing.<\/p>\n
\u201cIt\u2019s just something that you kind of have to absorb, wait it out a little, because it does level out, but if you can\u2019t make the sales, you can\u2019t survive,\u201d Toomey said. \u201cIt\u2019s really about navigating the waters and watching your numbers and being a little tighter than you\u2019re accustomed to.\u201d<\/p>\n
While Toomey says his rent is currently locked in, he notes that supplies, labor, and everyday operating costs continue to rise. To offset those increases, he\u2019s made small price adjustments and focused on keeping customers coming back.<\/p>\n
For other longtime neighborhood businesses, rent remains one of the biggest concerns.<\/p>\n
\u201cIt\u2019s absolutely concerning,\u201d Toomey said. \u201cIt\u2019s sad. I don\u2019t want to call it greed, but whatever drives a landlord to not find that middle ground, that\u2019s a problem too.\u201d<\/p>\n
According to the Kinder Institute for Urban Research, what\u2019s happening in Montrose reflects a broader national trend.<\/p>\n
Researcher Stephen Sherman says desirable neighborhoods often see rising costs as demand increases, making it especially difficult for local businesses with high overhead.<\/p>\n
\u201cLandlords of commercial and rental properties are looking to make money on their properties,\u201d Sherman said. \u201cRestaurants bring a lot of people, they\u2019re important anchors, but they\u2019re a really difficult business to run with really high overheads and a lot of staffing and logistical requirements.\u201d<\/p>\n
Sherman says similar patterns are playing out across cities nationwide, particularly in historically popular and culturally significant neighborhoods.<\/p>\n
Despite the challenges, Toomey says he remains committed to staying open and supporting the local community, and hopes customers continue to do the same.<\/p>\n
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