How Natural Food Stores Are Effecting The Real Estate Market
One of the biggest trends in this country has been that of a healthy lifestyle and clean eating. Local, organic and healthy – French fries are not cool anymore, veggies are. Friday Fitness has dethroned Happy Hour.
In recently collected data this trend is playing a role in real estate. Zillow’s new book, “Zillow Talk: Rewriting The Rules Of Real Estate”, weighed the appreciation rates of areas before and after a Trader Joe’s or Whole Foods open in the neighborhood. The results found were rather shocking.
Even in the areas where appreciation rates were down versus the average, a new Trader Joe’s or Whole Foods saw those rates increase within the first year of their openings. Both stores target well educated – but low income – markets in an attempt to bring up the value of said area.
The Miami Herald recently dove into our own community to see how the natural food stores have effected values in our communities.
This year, average sold prices escalated year-over-year in North Miami by 29.2%. These numbers were effected by abnormally large sales in July; however, it was still a great year to be near Whole Foods North Miami.
Surprisingly, despite adding a Whole Foods in Downtown Miami, it failed to even keep pace with the Miami-Dade market, only seeing a year-over-year price increase of 2.4%. This is more of a reflection of the condo market slowdown that started last year.
North Miami is an exception. All the other local ZIP codes that had a new natural food store underperformed their larger countywide markets.
The local numbers around Miami-Dade and Broward natural foods stores have less to do with the efficiency of the “Effect” and more to do with small sample sizes that are random. Plus the effect of a transition from a seller’s market to a buyer’s market also plays a factor.
There is a prestige associated with shopping at Whole Foods and Trader Joe’s. This prestige will help, not hurt, the value of your home.