HOUSTON – Across Houston, many businesses say sales have steadily increased over the past year.
But for some owners, that growth is being offset by rising costs that are making it harder to stay open.
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.
At Little Dreamer Coffee, owner Matthew Toomey says business has been encouraging, but expenses keep climbing.
“It’s just something that you kind of have to absorb, wait it out a little, because it does level out, but if you can’t make the sales, you can’t survive,” Toomey said. “It’s really about navigating the waters and watching your numbers and being a little tighter than you’re accustomed to.”
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’s made small price adjustments and focused on keeping customers coming back.
For other longtime neighborhood businesses, rent remains one of the biggest concerns.
“It’s absolutely concerning,” Toomey said. “It’s sad. I don’t want to call it greed, but whatever drives a landlord to not find that middle ground, that’s a problem too.”
According to the Kinder Institute for Urban Research, what’s happening in Montrose reflects a broader national trend.
Researcher Stephen Sherman says desirable neighborhoods often see rising costs as demand increases, making it especially difficult for local businesses with high overhead.
“Landlords of commercial and rental properties are looking to make money on their properties,” Sherman said. “Restaurants bring a lot of people, they’re important anchors, but they’re a really difficult business to run with really high overheads and a lot of staffing and logistical requirements.”
Sherman says similar patterns are playing out across cities nationwide, particularly in historically popular and culturally significant neighborhoods.
Despite the challenges, Toomey says he remains committed to staying open and supporting the local community, and hopes customers continue to do the same.