According to a study performed by Zillow, homes grow more rapidly in value if they are closer to a Trader Joe’s or Whole Foods. Between 1997 and 2014, homes near the two grocery chains were consistently worth more than the median U.S. home. By the end of 2014, homes within a mile of either store were worth more than twice as much as the median home in the rest of the country.
“Like Starbucks, the stores have become an amenity in their own right – a signal to the home-buying public that the neighborhood they’re located in is desirable, perhaps up-and-coming, and definitely improving,” said Zillow Group Chief Economist Stan Humphries. “Like a self-fulfilling prophecy, the stores may actually drive home prices. Even if they open in neighborhoods where home prices have lagged those in the wider city, they start to outperform the city overall once the stores arrive.”
“The grocery store phenomenon is about more than groceries,” said Zillow Group CEO Spencer Rascoff. “It says something about the way people want to live – in the type of neighborhood favored by the generations buying homes now. Today’s homebuyers seek things in neighborhoods that weren’t even in real estate agents’ vocabularies a generation ago: walkability, community, new urbanism – and maybe we should add words like sustainable seafood and organic pears.”
As you know, the Pike District (which includes both the White Flint 1 and White Flint 2 sectors) has both a Whole Foods and Trader Joe’s. Zillow CEO Rascoff emphasized that walkability, community, and new urbanism are qualities sought by homeowners. Sounds like he’s saying the Pike District is exactly what many homeowners and renters desire.