A Sept. 18 report on Costco and home values is revisiting a question agents and homeowners have debated for years: Does living near the warehouse retailer actually make a home worth more?
The answer is more complicated than the listing pitch suggests. Research highlighted in the report found no measurable nationwide price bump after Costco openings. Some denser and higher-income markets did post gains, while a separate 2026 study found that homes near a Costco that moved away appreciated more than those around its new location.
For agents, Costco can be a useful neighborhood amenity to mention. It is not a pricing premium to assume without local comps behind it.
What the research says
Silas Kwok of the Vancouver School of Economics studied Costco openings across the US from 2002 to 2020. His research on nearby property values found no measurable nationwide price bump after a store opened, including during the following 2.5 years for properties within 20 miles.
The results changed in denser and higher-income markets. Within five miles of an opening, property values rose 7.9% in above-average-density areas and 5.2% in above-average-income areas after 2.5 years. Those figures apply to specific market groups, not every home within five miles of Costco.
Cotality Chief Economist Selma Hepp told Realtor.com that Costco may also be choosing markets already positioned for growth. Some appreciation, then, could reflect the strength of places where Costco decides to build rather than a price increase created by the store itself.
When proximity helps — and hurts
Researchers from Fresno State examined housing transactions around Costco’s old and new locations after the warehouse moved within the Fresno-Clovis area in 2019. Their peer-reviewed relocation study found that house prices near the former location increased about 8% to 9% relative to the control area.
Prices around the new Costco moved only slightly, and researchers found no statistically significant effect they could attribute to the store. They said the gains near the former location may reflect the disappearance of heavy store traffic and other neighborhood disruptions tied to the warehouse.
A Fresno State research summary also notes that the findings are specific to the Fresno-Clovis market and were not evenly distributed across the areas studied.
A Costco a few minutes away may feel convenient. A home facing its loading area, parking lot, or busiest access road may present a very different buyer experience.
How to test the Costco premium in your comps
Start with a comparative market analysis using properties matched for type, size, age, condition, lot characteristics, school assignment, and sale period. Where possible, distinguish homes with direct warehouse exposure from those that are simply within a convenient drive.
Actual access matters, too. Five easy miles can be more useful to a buyer than two congested ones. Check traffic patterns, surrounding commercial parcels, and zoning before assuming nearby development will improve or hurt the property.
Where enough sales exist, compare days on market, sale-to-list ratio, price per square foot, and concessions among otherwise similar homes. Recent local pricing signals should carry more weight than a national Costco average.
A small or poorly matched comp set cannot establish a Costco premium simply because broader research found gains in some markets.
When Costco belongs in the listing — not the price
A nearby Costco can strengthen a listing’s convenience story, particularly for buyers who already shop there. That is different from assigning the feature a dollar value.
Before pricing around Costco proximity, check the comps, traffic exposure, drive time, surrounding land use, and broader market. If buyers may value the access but the sales data do not show a measurable premium, keep Costco in the marketing copy rather than treating it as a CMA adjustment.