Costco Is Planning to Open up to 28 Stores This Year: Should I live near Costco?

Costco is a wholesale grocery store with close to 600 stores in the US.

Table of Contents:

What is Costco known for?

Where is Costco operating?

Is Costco planning to open more stores? 

Where will the new stores that Costco stores be located?

Does having a Costco near me increase the value of my property? 

What is the Costco Mortgage program?

How to apply for a Costco mortgage

What is Costco known for?

Costco Wholesale Corporation or Costco for short is a U.S. company that is known for having large discount stores that act as wholesale supermarkets. Areas Of Involvement: retailing supermarket discount store warehouse club. What sets Costco apart from many other supermarkets and grocery stores is that they sell their products at discounted prices to all those who are members. To become a Costco club member, you will need to pay an annual membership fee. 

Apart from regular supermarket items Costco also has a big selection of other products, merchandise, and even at times luxury goods. While Costco stores tend to be extremely large, they normally only offer one-tenth of the variety that can be found in other supermarket stores. Part of the reason for this is that the quantities they sell are much larger than those found in regular stores. Occasionally you may also find a Costco near you that offers other businesses and services including pharmacies and gas stations.

Finally, Costco members can also benefit from a mortgage program offered through Cross Country Mortgage, LLC. With the Costco mortgage, you can get access to refinancing loans, veteran loans, and regular mortgages, which are bound to make purchasing your next home that much easier. 

Where is Costco operating?

While Costco has expanded to markets outside of the United States, the USA remains their primary market with over 572 stores across the United States and Puerto Rico. Costco currently operates in 48 out of the 50 states with California being the state with the most Costco stores. In fact, 22% of Costco stores in America are located within the state of California. 

• Close to 600 Costco stores in the USA alone
• Costco stores require an annual membership
• Costco is planning to open 28 more stores in 2022

Is Costco planning to open more stores?

According to a recent interview given by Costco’s senior vice president of finance and investor relations Bob Nelson to the Wall Street Journal, the company is planning on expanding its network even further in 2022. As of right now, Costco has noted its plans to open up to 28 new stores in the coming year. This is in line with the expansions that Costco has partaken in the last few years. In fact, in 2021 Costco opened 20 new stores. 

According to further reports, Costco is estimating that they will spend around $4 within their 2022 fiscal year which is due to finish in August. As of right now Costco has not made any official reports regarding the location of those Costco stores and has not provided any information that indicates that they will be looking to expand to those states in the US that do not currently have a Costco presence. 

Where will the new stores that Costco stores be located? 

As of right now, Costco has not made any official announcements regarding the location of all the stores that they are planning on opening in 2022. However, the expansion is bound to be quite big as they are planning on opening 28 stores within the year. 

The one announcement that they have made mentions that one of the locations will be in Kelowna, BC.

Does having a Costco near me increase the value of my property? 

Whether you are already the owner of a property that is bound to be close to a new Costco that is opening up or you are looking to buy a property and you are interested in one that is located in close proximity of the wholesale supermarket you may find yourself wondering about the effects that this grocery store is bound to have on your property’s prices. While certain businesses may lead to the devaluation of your property, grocery stores normally have the opposite effect. 

In general, more grocery stores in close proximity to your home will lead to higher property values. However, that is only true within reason. If your neighborhood is already overfilled with a number of different grocery stores then food scarcity is not an issue that will need to be addressed through the opening of a new grocery store. In those cases, having a new Costco open up near you may not result in an increase in your property value. Still, the existence of the store may make your property more attractive and thus, far easier to sell. 

However, the situation is entirely different if your home is located in an area where food options are not entirely abundant. The reasons for this are often narrowed down to include the following list:

1. Convenience

Having a Costco near your home could lead to an increase in your home’s value because of the convenience of having such a large wholesale supermarket near you. Having the store nearby means that whenever needed you are able to simply walk into the store and purchase whatever you need. For those who like to do their grocery shopping in small doses throughout the week, this can be extremely useful and could be a big-time and money saver.

2. Reduction of travel time and gas costs

As the store is near your home you will find that you are saving money on the journey back and forth. Apart from the time saved you will also be able to save on money as you are going to be spending less money on gas spent for the journey back and forth from the grocery store. For many homeowners, any chance to save money is welcomed and for many homebuyers, the option of being able to save on those two is one that they will take quickly if given the chance. For this reason, having a Costco near your home could result in both a property price increase and in the sale of your home in a much faster timeline.

3. Gentrification

In the cases of “Food Deserts” having a Costco open near the area could lead to the overall area getting more and more developed. This is because the existence of a grocery store will allow a larger number of people to live in the areas. This gentrification of your neighborhood which will be led by the existence of new businesses, will lead to an increase in property prices throughout the area as properties will be viewed as more attractive, and more high-income earners will choose to move into the area.

If you are looking to purchase a home near a Costco location then you may also be able to benefit from their Costco Mortgage program. The program is available to all Costco members and can help you with getting the necessary funding to purchase your new home.

Benefits of the Costco Mortgage program: 

• FHA, jumbo loans, and conventional loans are available
• First-time homebuyer loan option that allows for adjustable rates 
• VA loans with great interest rates, no down payment, and no mortgage insurance 
• Very low Lender origination Fees. For Costco executive Members the origination fee is $350 and for God Star Members it is $650.
• Offers pre-approval or qualification letter to make purchasing a house easier 

What is the Costco Mortgage program?

While Costco is mainly known for giving its members the ability to bulk buy produce and household items, that is not the only service that the corporation offers. Much like they do with their stores a similar logic was applied to their Mortgage program.

The Costco Mortgage Program is a marketplace for those looking for a mortgage and it is available both to Costco members and the general public. Through the program, you get access to a number of participating home loan providers and you get the option of looking through the options that they have available as well as their rates. Essentially, through the Costco program, you can very easily company rates and offers those different lenders’ supply. And while anyone can use the program, Costco members can benefit from discounts if they choose to find their lender through the Costco loan platform.

Participating Costco lenders (as of December 2020):

• ConsumerDirect Mortgage
• CrossCountry Mortgage
• Lending.com
• Mutual of Omaha Mortgage
• NASB Home Loans
• NBKC Bank
• Strong Home Mortgage

Anyone who is a Costco Executive member is able to have their loan origination fees capped at $350, while Costco regular members can have their fees capped at $650. For most people that will mean massive savings on their closing costs.

Another benefit of the Costco mortgage program is that they offer a 3% Down Payment option. For many people that will be significantly less than the amount that other providers will ask for.

Finally, through the Mortgage Program for Costco Members which is in fact more of a multi-lender marketplace for consumers, members and non-members can find loans for all of their home purchasing needs. These could include Traditional Mortgages, Refinancing Options, Home Equity Loans, Loan Reversal, Jumbo, Fixed, Adjustable, FHA, VA, and USDA home loans. And all of that by visiting one simple website.

Pros

• Origination Fees are capped for Costco members reducing in this way all closing costs
• Allows you to compare rates and products offered by different Lenders quickly by only checking out one website
• Their platform and website is optimized for mobile use
• They offer an automated mortgage-application process.
• Available throughout the USA

Cons

• You only get discounted loan fees if you are a Costco member
• There are no physical locations, all service needs to be provided online

How to apply for a Costco mortgage?

If you are interested in applying for a mortgage through the Costco platform then you will need to visit www.costcofinance.com. The process of getting a loan through the Costco platform is automated and all you will need to do is fill out your “Membership Information” and “Mortgage Details” in the forms available. By filling out the forms Costco will find mortgage rates and potential lender products that would match your needs. The results that Costco shows you will be the perfect way for you to compare the different rates that are available from different lenders. Once you have decided on a lender you can just apply for the loan product that best suits you at the best available rate.

Summary

Costco is planning a large expansion which will include approximately 28 new stores throughout the United States. Those properties that are located near α Costco store could have owners that will be pleasantly surprised by an increase in the property prices in their area. This is because the existence of the grocery store in the area means more convenience and savings for homeowners.