There’s a Trader Joe’s bump, and it’s not just when someone bumps you while trying to grab the Ketchup Flavored Spud Crunchies.
A new study shows that owners of homes near Trader Joe’s tend to have a return on investment of 51%, while homeowners living near a Whole Foods have an ROI of 41%. In a Yahoo News article about the study, Warburg Realty agent Susan Fishman said that home values jumped by more than $300 per square foot in the year after Trader Joe’s opened at 100 West 93rd Street at Columbus Avenue. On a 1,000-square foot apartment, that amounts to $300,000.
Fishman is the listed agent on a one-bedroom listed in the building for $1.241 million. The listing notes that “Trader Joe’s just opened their second Upper West store right downstairs, and Whole Foods is just a few blocks away.”
There are some skeptics of the Trader Joe’s bump, given that the store tends to locate in neighborhoods that may already be climbing in value.
“People would pay more to live near a nicer grocery store. But, I think this might be more of a chicken and egg question,” said Steven Gottlieb, another agent at Warburg Realty, in the Yahoo article.