If a Trader Joe’s or Whole Foods recently popped up in your neighborhood, good news: your house may be worth more than you think! Recent research from Zillow indicates that by the time 2014 came to a close, houses falling within a mile radius of either of the two grocery stores were worth double the median home value in America.
This is similar to the previously reported “Starbucks Effect”, which was most prevalent in the eastward half of the country.
Easy access to premium grocery items and of course the infamous “Two Buck Chuck” is certainly convenient, but don’t be fooled by the correlation: the rise in property values is indicative of overall changes in the neighborhood, and likely not a direct reaction to the popular grocery stores themselves. The presence of a Whole Foods or Trader Joe’s is a sign of an area progressing towards a high-end population. A variety of other local amenities may encourage the same effect.
Still, this is auspicious for those in proximity to the stores – especially if you’re looking to sell your house!