The ‘Costco effect’: How the warehouse chain is boosting home values
Oct 16, 2026, 8:11 AM
Hundreds of people line up to enter a Costco store. (Photo: Justin Sullivan, Getty Images)
(Photo: Justin Sullivan, Getty Images)
Costco is becoming a selling point in the housing market.
According to a Zillow analysis first reported by USA Today, approximately 3% of active listings across 606 ZIP codes specifically mention a Costco warehouse.
Real estate agents said proximity to bulk deals, cheap gas, and the food court is becoming a lifestyle perk. The sweet spot? Five to 15 minutes away.
“Sellers are actively marketing proximity to the warehouse club as a selling point, treating it more like a lifestyle amenity,” Zillow home trends expert Amanda Pendleton told USA Today.
Dubbed the “Costco effect,” proximity to a Costco warehouse boosts local home values and has become a major selling point for house hunters. Costco has even been built into home-search tools, letting prospective buyers filter properties by distance from the warehouse chain.
According to the Zillow analysis, homes within five miles of a new Costco in counties with above-average population density saw values rise by nearly 8%. Homes in higher-income counties saw more than a 5% increase in value after a Costco opened.
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Costco brings back beloved food court item for first time since 2024
Costco is bringing churros back to its food courts.
Churros will return to every U.S. location for a limited time. Costco’s chief financial officer, Gary Millerchip, confirmed the news during an earnings call.
“For a limited time, the food court churro will be returning to all our U.S. locations starting this month,” Millerchip said, according to The Tacoma News Tribune.
For just $1.49 per churro, customers can enjoy a foot-long churro coated in cinnamon sugar. Costco hasn’t offered churros in its food courts since 2024.
Costco’s food courts generate an estimated $1 billion in gross annual revenue across its global warehouses, but they earn virtually zero net profit. Instead, they’re part of the company’s loss-leader strategy, maintaining memberships by creating excitement around bulk shopping.
It’s unclear how long churro will stay on menus, as of this reporting.
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