Your Home Can Be More Valuable If You Live Close to These Stores.
For the most part, people like to live where there are nearby amenities – we need fancy food and coffee. And a recent report from Zillow shows this. Homes go up faster when Starbucks, Whole Foods or Trader Joe’s are nearby, according to the report.
To get its data, Zillow analyzed millions of homes over 17 years, given their neighborhoods, average home values, store openings, and more. The full results were published in Zillow Talk: Rewriting the Rules of Real Estate , but Zillow has published some of this data in a press release. Several interesting finds:
- Trader Joe’s : Homes near the future Trader Joe’s location are priced roughly the same as other homes in the same city. But as soon as the store opened, they found significant growth. “Two years after Trader Joe’s opened, the average home within a mile of a store is up 10 percentage points more than homes in the city as a whole over the previous year.”
- Whole Foods : Interestingly, they found houses near the upcoming Whole Foods store were priced slower than other houses before the store opened. But a few months before the opening, the trend changes and home prices start to rise faster. By the end of 2014, according to Zillow, homes within a mile of Whole Foods or Trader Joe’s were worth more than double the average home in the rest of the country.
- Starbucks : According to the Guardian , Zillow also found that homes near Starbucks rose 96% between 1997 and 2014, up from an average of 65% for US homes at the time.
Of course, the old correlation versus causation argument can be made here. Or, as The Guardian writes, “Which came before, Starbucks or higher property prices ?” But Stan Humphries, chief economist at Zillow, makes an interesting takeaway about the overall findings:
… shops have become convenience in themselves – a signal to home buyers that the area they are located in is desirable, possibly promising and definitely improving, ”said the chief economist at the Zillow Group. Stan Humphries. “As a self-fulfilling prophecy, stores could actually drive home prices up. Even if they open in areas where house prices lag behind those in the wider city, they start outperforming the city as a whole as soon as stores pop up.
Either way, the data shows how connected grocery stores and homes are. For more details please follow the link below.
Homes Near Trader Joe’s And Grocery Stores Appreciated Faster | Zillow via Business Insider