On a bright Monday morning last week the newest Trader Joe’s held a Grand Opening at the corner of Fair Oaks Avenue and Monterey Road in South Pasadena. The event was a busy and fun morning which included the Trader Joe’s All Star Band (Trader Joe’s employees playing rock and pop hits live), a ribbon cutting complete with those giant scissors, and finally access to the new store for the hundreds of people who stood in a line wrapped around the building to get in. You can see a video of the Grand Opening below.
While having a brand new grocery store is great for any community, it turns out that having a Trader Joe’s open in your neighborhood actually does quite a bit to increase home values. According to data research firm, ATTOM, proximity to Trader Joe’s was measured to have a 51 percent Return on Investment (ROI) for properties nearby. That is fully 14 per higher than the national average for ROI on all homes.
The research also showed that the sales prices of homes near a Trader Joe’s were considerably higher than the national average. The sales prices of properties near a Trader Joe’s were measured to be 3 times as much as a home near an ALDI food store. Therefore, having a new Trader Joe’s open up in a community is good for real estate appreciation.
In a related study, Zillow looked at the value of homes near a coffee shop (think Starbucks). The data revealed that properties within a close proximity to a coffee shop increased in value by 96 percent. That was 31 percent higher than the average for all residential properties. The effect was particularly pronounced in larger cities like Boston, Philadelphia, Washington D.C., Chicago, and Baltimore. It should be noted that South Pasadena also has multiple Starbucks and boutique coffee shops sprinkled throughout town.
So in addition to making our lives easier in South Pasadena, the new Trader Joe’s location is boosting real estate values! If you’re interested in buying or selling a home near the new Trader Joe’s (or anywhere in South Pasadena) reach out to the best realtor in South Pasadena (Derek Vaughan) anytime.
