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I'm also glad the tone has been civil and the comments insightful.

Re: your response to me, I actually don't think the "message" sent by a the type of retailer locating in an area is the most salient reason for a price increase.

Sure, if a Whole Foods moved into an area, that would do better to attract wealthier clientele. But if even a Giant (or frankly, a 7-Eleven) move in, the area within a quarter -mile radius of the new store is still inherently more desirable, simply because of the new amenity. Just the addition of a simple supermarket or small grocery store will work to bump prices up.

Then . . . it snowballs. As we've seen elsewhere in the city, one restaurant moves in, then another, then several, then somewhere along the way, a small grocery, then another, then a supermarket, then another. "Whole Foods" (and "Trader Joes", which also goes after an affluent market) are rarely, if ever, pioneers. They go where there other amenities already exist.

Once even one small amenity comes to an area, it will attract more people (demand) who will then attract more amenities, and the price escalation will take off.

I'm really not sure of the short-term solution, but the addition of simple amenities is, I think, by itself a catalyst for residential price increases.

by Joey on Nov 9, 2010 4:24 pm • link • report