Are Gourmet Grocery Stores Gentrifying Neighborhoods?

With hundreds of locations nationwide, gourmet grocery chains like Trader Joe’s and Whole Foods are a staple of wealthy communities. But these chains have begun to pop up in many underserved neighborhoods as well. While the takeover of specialty grocers has not always been well-received, there’s reason to believe these high-end chains may actually increase the desirability of an area.

According to a new study from the real-estate site Zillow, homes tend to appreciate in value when there is a local Trader Joe’s or Whole Foods nearby. This finding comes from a wide-ranging examination of city-level data on nearly 3 million homes (single-family, condos, and co-ops spanning more than 80 locations nationwide) within a mile of a Trader Joe’s or Whole Foods. From 1997 to 2014, the value of these homes exceeded that of the median home in the U.S., according to Zillow’s calculations. And by the end of 2014, these homes were worth more than double the year’s median home value.