Proximity to all your favorite things is a factor you may consider when shopping for a home, but a new study revealed that living next to Costco can potentially increase your property value. Data comes from the Vancouver School of Economics, which tracked Costco store openings from 2002 to 2020. It also dug into how living next to other retailers—like Walmart, IKEA, and Whole Foods—impacted home value.
The Costco Home Value Effect
The study examined property values near new Costco locations for the first 2.5 years following the store opening. Then it compared them to similar areas without a new store to see whether Costco’s arrival had any measurable impact on home prices.
While new openings didn’t affect home values for most places, there were two notable exceptions where it did: densely populated areas and wealthy counties. Home value spikes were seen in more densely populated counties, with homes within 5 miles of a new Costco increasing in value by about 7.9%. And in wealthier counties, nearby home values increased by about 5.2% after 2.5 years.
What About Other Retailers?
We know from separate studies that other big-name retailers can potentially affect nearby home values, as well. Previous research from the Journal of Urban Economics and the Journal of Environmental Design and Planning found that property values tended to rise near new Walmart and Whole Foods locations. Naturally, the effect became smaller the farther away homes were.
IKEA had a slightly different effect on home values, according to a 2021 Harvard study. The biggest increase in home values occurred about 1.25 miles from the store with a 6.7% increase observed. That value bump gradually declined with distance.
Many clearly value the convenience of living near these big retailers, and that appeal might just earn you a better ROI on your house.
Wendy Rose Gould is a lifestyle journalist who routinely contributes to Real Simple, Martha Stewart, Women’s Health, and House Beautiful, among others. She covers home and garden, wellness, and travel, focusing on thoughtful storytelling and detailed reporting. When not writing, you can catch her perusing thrift stores, singing, hitting the gym, and petting any cat or dog that’ll allow it.
Source: Home Ideas - goodhousekeeping.com
