Here are a few good affordable diners where I live.
If a speaker is in the place in which what they talk about is, they can use both 'here is' and 'there is' structures, can't they?
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This usage confuses the use of 'there' as a pronoun with its use as an adverb. This difference is described on MacMillanDictionaryOnline
In your sentence you're trying to substitute 'here' for 'there'. This works when 'there' is used as an adverb. In the following examples, 'here' and 'there' are adverbs modifying 'to have'.
We have a few good affordable diners there.
We have a few good affordable diners here.
In your example, with the word 'there' in that position, it is actually a pronoun for 'diners'. This is a common construction in English, particularly when the verb is 'to be'. another ways of writing what you're saying is
Where I live are a few good, affordable diners.
You don't hear sentences like this by themselves very often, though. This sounds like part of a longer idea and leaves the native speaker expecting something else. It sounds like you are introducing the idea of the diners so you can say more about them.
Where I live are a few good, affordable diners. I like to take my friends to them.
So, if you want to just state the existence of the diners as an idea by itself, you introduce the subject of the diners using the pronoun, 'there'.
There are a few good, affordable diners where I live.
Where I live, there are a few good affordable diners.
There is one context in which this construction will work. 'Here is/ here are' is used when pointing out something nearby, or giving someone an object to look at. You are looking at the place you live on a map or somehow pointing it out to someone, and you are telling them that there are a few good, affordable diners there, as a way of describing the place. Adding a comma to the sentence makes this meaning clear.
Here are a few good, affordable diners, where I live.
No. Anytime a location is stated, we use "there is...," even when the location is the word "here":
- There are a few diners where I live.
- There are a few diners here.
"Here is" already includes a location, and no other can be specified. It presents or introduces something that should be visible or perceptible to the listener in the moment.
- Here are a few diners. (Suggests you can see them, and are showing them to the listener.)
- Here's your pizza.
Here are in "Here are a few good affordable diners where I live." is being used deictically. That basically means referentially.
Another example: Here come the players! [out of the stadium locker room]
It implies you are pointing to or otherwise indicating the diners, on a map, for example.
Deixis in English can get very complicated.
COMPARE here is/are to there is/are
There is/there are are for general statements of any kind but do not have a deictic function.