Do You Live Near A Trader Joe’s? Here’s Why Your Home May Be Worth More Than You Think
Properties Located Near A Trader Joe’s Have Increased Home Values, Study Finds
According to a 2015 study by RealtyTrac, homeowners located near a Trader Joe’s have received a boost in home value appreciation since they purchased their home. Data from the 2015 study showed that homeowners who live in the same zip code as a Trader Joe’s have seen their property values increase on average 40%. Home value appreciation decreased a bite for homes located near a Whole Foods, however, to just 34%. The average appreciation for all zip codes nationwide is also 34%.
In addition, the study found that homes located near a Trader Joe’s have a higher value on average at $529,339. That statistic is 5% higher than the average value for properties near a Whole Foods, which is $561,840. In comparison, the average value of homes was $262,068 for all zip codes nationwide.
What is the downside?
The disadvantage, however, to the increased value appreciation homeowners near a Trader Joe’s experience is an increased amount in property taxes. According to RealtyTrac, on average homeowners pay $8,536 in property taxes annually. That is 59% more than the average homeowner who lives near a Whole Foods pays, which is on average $5,382 in property taxes. Property taxes that homeowners pay nationwide on average is $3,239.
The Starbucks Effect
There is another similar effect that contributes to an increase in home values, known as the ‘Starbucks effect.’ According to another study from Zillow.com, homeowners within a quarter-mile of a Starbucks can expect to see their home values rise faster than homes that aren’t. The data showed that between 1997 and 2014, homes located within a quarter-mile of the popular coffee chain increased in value by 96% on average, compared to 65% for all U.S. homes.