Which came first? Whole Foods or home value?
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