The ‘Costco effect’: How the warehouse chain is boosting home values

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.

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.