Trader Joe’s announced back in April that it’s location on S. Decatur will be closing, and re-opening in Centennial Center Blvd.
What the folks who frequented the Decatur location may not realize is that they stand to lose a lot more than cheap coconut oil.
Studies have shown that homes located close to a Trader Joe’s store appreciate in value more than double the rate per year than homes not within “the neighborhood.”
However, Trader Joe’s isn’t the only fresh food store that carries such an impact on home value. Whole Foods is the other one.
they stand to lose a lot more than cheap coconut oil
According to an article on real estate news site, Inman.com, “As of 2016, 2.8 million homes are located near one of 375 Whole Foods locations or 451 Trader Joe’s locations, and those homes have appreciated at double the rate of homes in other areas.”
Inman reporter Marian McPherson also shared that it’s not always a case of each store opening in higher income communities.
In McPherson’s piece, Zillow economic analyst Jamie Anderson said, ” … it appears both chains are either incredibly smart about finding neighborhoods on the verge of gentrifying, or the opening of either location positively impacts home values.”
No doubt you’ve heard about the impact of location on real estate. After all, you can’t make more land.
This is why new Las Vegas home communities located near the scenic edges of the valley tend to command higher prices than those locked to the interior. People want views, privacy, and access to open space.
They also want access to expensive coffee, as previous home value studies have shown that locating near a Starbucks will positively impact the value of homes in Las Vegas.
However, with so many locations, studies about the “Starbucks effect” have been harder to prove because it isn’t consistent across all markets. For example, the coffee giant will push home value in a place like Boston more than it will in a city like Seattle, where it’s based.
In short, it’s not quite that big a deal in places already richly caffeinated. So to speak.