The Zillow Research article discusses the impact of proximity to Whole Foods and Trader Joe's on housing values in the United States. According to the article, homes located within a one-mile radius of a Trader Joe’s or Whole Foods had significantly higher median values compared to the national average. In 2014, homes near a Trader Joe's had a median value of $406,600, while those near a Whole Foods were valued at $376,200, in contrast to the national median home value of less than $180,000. Between 1997 and 2014, homes near these high-end natural food stores appreciated by an average of 148 percent and 140 percent, respectively, outpacing the 71 percent appreciation of the typical U.S. home during the same period.
The study also looks into the timing of the appreciation, suggesting that the effect is because these stores are located in already affluent neighborhoods. Analyzing the opening dates of 40 Trader Joe’s and 40 Whole Foods stores, the researchers found that homes near these locations appreciated at the same pace or slower than the typical home in the city before the stores opened. However, after the opening of either store, houses in the neighborhood began to appreciate faster than the average home in the city. This indicates a potential positive impact on home values associated with the presence of Whole Foods or Trader Joe’s in the neighborhood.
https://www.zillow.com/research/whole-foods-trader-joes-home-value-11696/
This is a really interesting topic! I think the key question that I take away from it is whether or not the higher home value is relatively more causation or correlation. This comes down to whether these stores are choosing the neighborhoods they build stores in, or if homeowners choose where to live because of the presence of a high end food market. Additionally, if these stores really do bring value to the homes around them, which it seems like they do, can we subsidize the opening of such stores in a way that we can reap the social benefits.
ReplyDeleteThe article made me reflect on the complex relationship between consumer choices, urban development, and real estate values. Your post not only broaden my understanding of the housing market but also raised questions about the socio-economic impact of commercial establishments on local communities. Great!
ReplyDelete