Which came first? Whole Foods or home value?

The Denver Post - - BUSINESS -

Try­ing to pick be­tween two com­pa­ra­ble houses and think of your house as more of an in­vest­ment than shel­ter? Pick the one near a Trader Joe’s or Whole Foods store, new anal­y­sis by Zil­low sug­gests. Homes within a mile of ei­ther gro­cer ap­pre­ci­ate more rapidly af­ter one of their stores open and are con­sis­tently val­ued at more than twice as much as the me­dian home in the rest of the U.S., the real es­tate re­search firm found. Is it a “chicken or the egg” sit­u­a­tion? Per­haps.

To cal­cu­late rel­a­tive me­dian val­ues, Zil­low looked at the value of 3 mil­lion homes within a mile of a to­tal of 451 Trader Joe’s and 375 Whole Foods stores be­tween 1997 and 2014. The re­searcher also tracked an­nual ap­pre­ci­a­tion rates for houses, con­dos and co-ops for three years be­fore and af­ter 40 Trader Joe’s and 40 Whole Foods stores opened.

Home val­ues in neigh­bor­hoods that landed a Whole Foods were in­creas­ing more slowly than other parts of the city be­fore the store opened, then be­gan to ap­pre­ci­ate more quickly than other area homes. Homes near com­ing-soon Trader Joe’s were ap­pre­ci­at­ing at a rate sim­i­lar to other homes in the city, but two years af­ter the stores opened, the me­dian home within amile had ap­pre­ci­ated 10 per­cent­age points more than oth­ers in the city the year be­fore, the re­port said. The Den­ver Post

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