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Forget good schools, spacious backyards and fancy kitchens. For some American homebuyers, the hottest neighborhood amenity is a Costco down the road.
The wholesale giant has become such a draw that house hunters are increasingly factoring the distance to their nearest warehouse into where they choose to live — a phenomenon dubbed the “Costco effect.”
Real estate agents say the sweet spot is typically a five- to 15-minute drive, close enough for a quick grocery run but far enough to escape the traffic, delivery trucks and parking lot chaos, according to USA Today.
And sellers are catching on.
An analysis by Zillow found that roughly 3% of active home listings across 606 ZIP codes containing a Costco explicitly mention the retailer in their descriptions, marketing proximity to the warehouse as a lifestyle perk.
In Pensacola, Florida, one three-bedroom home listing advertised its location just 2.6 miles from the city’s first Costco alongside its proximity to downtown and nearby beaches.
In Austin, Texas, broker Sean McCormack of Nice Move Realty has even incorporated Costco into his home-search tools, allowing prospective buyers to filter properties by their distance from the warehouse chain.
For some shoppers, the obsession goes well beyond convenience.
Adam Staley, a Kansas City, Missouri, resident who visits Costco at least four times a week, told USA Today that living near the store was a major factor in choosing his family’s rental home.
The property was just five blocks from the warehouse, putting his favorite shopping destination a three-minute drive away.
But that convenience recently disappeared when the location closed to transition into a Costco Business Center, leaving Staley facing a roughly 25-minute drive to the next traditional warehouse.
The attraction may also have financial implications for homeowners.
As The Post previously reported, research from the Vancouver School of Economics examining Costco openings nationwide between 2002 and 2020 found that new warehouses had no statistically significant impact on nearby property values overall.
However, homes within five miles of a new Costco in counties with above-average population density saw values rise 7.9%, while those in higher-income counties experienced a 5.2% increase over the 2½ years following an opening.
The findings suggest that while having a Costco nearby could be a selling point, the potential boost to property values depends heavily on the local market.
There are also trade-offs. While easy access to bulk groceries and discounted gas can make a neighborhood more appealing, living too close to a busy warehouse can mean dealing with traffic congestion, crowded roads and delivery trucks.