Can you guess what it is?
It’s been reported by Zillow that Whole Foods and Trader Joe’s can increase your home’s appreciation value upwards of 140-148%! That’s nearly double the rate of median U.S. homes.
Due to the organic food craze and households becoming more conscious of their eating habits, home buyers are factoring healthy stores as part of evaluating where they purchase their home. In 2016, 2.8m homes located near any of the 375 Whole Foods stores, or any of the 451 Trader Joe’s locations, appreciated at double the rate of homes than in other areas. Need more proof? Consider this, from 1997-2014 a median home near Whole Foods originally worth $157K appreciated upwards of $376K. That’s a 140% increase! If the home was near a Trader Joe’s instead, it appreciated by 148% to $407K.
You may be thinking since both of these stores are traditionally located in affluent neighborhoods, of course, it would impact the home’s value. Based on the same research from Zillow, that’s not the case. Homes within a city appreciated at similar paces until a Whole Foods or Trader Joe’s opened. The homes in close proximity of these stores then appreciated at a faster rate. Furthermore, these stores are not piggybacking hot neighborhoods as some would think. According to Zillow data analyst Jamie Anderson, its smart research by these stores to find neighborhoods on the verge of gentrifying, and the number of openings that impact a location, and surrounding home values.
So what about Starbucks? The median value of homes nearby a Starbucks appreciated 171% over a 16-year time period. The average is 126%. Interestingly, in its own backyard (Seattle) Starbucks doesn’t have a significant impact. Home values only appreciate 16%.
What does this all mean? When searching for a new home you may want to take notice of these 3 stores, and their proximity to your new home. If it’s a newly developed community, you want to ask your agent what are the plans to open any of these 3 stores, and where will they be located.
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