Dear Trader Joe’s, Why Not South Seattle?

According to this report by ATTOM Data, homeowners near a Trader Joe’s have seen an average 2012-2017 home price appreciation of 67%, compared to 52% near a Whole Foods and 51% near an ALDI. (In case you’re wondering, the closest ALDI is in Bakersville, CA.)

Inman (sorry, paywall) points out that Zillow did a similar 1997-2014 study showing that homes near Trader Joe’s and Whole Foods appreciated twice as quickly (148% and 140%) as the national average (71%) during this time:

Before either a Whole Foods or Trader Joe’s location opens its doors, homes near the soon-to-be-opened store appreciated at the same pace or slower than the typical home in that city. Once these locations open, this relationship changes. Homes near either store begin to appreciate faster than the average home in the city.

Whole Foods and Trader Joe’s are not simply piggybacking off already hot neighborhoods. Rather, it appears both chains are either incredibly smart about finding neighborhoods on the verge of gentrifying, or the opening of either location positively impacts home values.

I think it’s not either or, but both. I saw it first hand in DC. A Whole Foods came to my once crime-ridden neighborhood (Logan Circle) and wham! Property values nearby took off and that store immediately became one of Whole Food’s busiest DC locations. So, considering the rapid rate of gentrification that we’ve already seen in South Seattle, don’t we deserve some consideration from Trader Joe’s?

Posted on August 3, 2017 at 6:52 pm
Isabel Wang | Category: Uncategorized

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