Ask buyers in Lake County what they want near their next home. Somewhere after "good schools" and "not on a busy road," you'll usually hear some version of "a grocery store I can get to in five minutes."
Sellers ask the flip side. If there's a Costco, a downtown, or a mall nearby, shouldn't that be worth something?
Researchers have spent the last few years trying to put a number on it. The short version: being near good shopping helps. Being next to it doesn't. And three places in Lake County show how that plays out in real life: Hawthorn in Vernon Hills, downtown Libertyville, and downtown Mundelein.
Quick answer: Nearby retail can lift home values, but it depends on the market and the distance. A study of Costco openings found no price change on average, but gains of about 5% to 8% within five miles in denser and higher-income areas. Living right beside a big store can cut the other way. In Lake County, the clearest examples are Hawthorn in Vernon Hills, walkable downtown Libertyville, and downtown Mundelein, where new housing is arriving ahead of new shops.
Buyers pay for a five-minute drive. They don't pay to stare at a loading dock.
What the Research Says
The most-cited recent work comes from Silas Kwok at the Vancouver School of Economics, who studied Costco openings across the U.S. from 2002 to 2020. On average, he found no significant change in nearby home values. But within five miles of a new store, values rose 7.9% in counties with above-average population density and 5.2% in counties with above-average household income, measured two and a half years after opening.
A second study, from business faculty at Fresno State, flipped the question. When the Costco in the Fresno-Clovis area relocated in 2019, homes near the old location rose about 8% to 9% compared with similar neighborhoods. Homes near the new store showed no statistically significant change. The researchers' best explanation: the heavy store traffic left.
There's also a chicken-and-egg problem. Cotality Chief Economist Selma Hepp has pointed out that some of that appreciation may simply reflect where Costco chooses to build, as The Close reported. Big retailers do serious homework before they sign a lease. Sometimes they aren't lifting a neighborhood so much as spotting one that was already on its way up.
Put it together and the pattern is simple. Convenience is worth money. A parking lot under your bedroom window isn't.
Hawthorn: Retail and Housing Feeding Each Other
In 2025, Vernon Hills posted the highest annual retail sales of any Lake County community, more than $2 billion, up 13.2% from the year before. That figure comes from retail consultant John Melaniphy, as reported by the Daily Herald. He credited two things: shoppers drifting over after the decline of Golf Mill in Niles and Northbrook Court, and the residential development growing around Hawthorn itself.
That development is real. The Domaine, 311 apartments over the street-level shops of Hawthorn Row, opened in 2024 on the old Sears footprint. A second phase with 282 apartments, on the former Carson's site, is scheduled for 2028. Owner Centennial is wrapping up a $5 million interior refresh this fall, and outward-facing storefronts and plazas are slated to start in early 2027. The village has pledged $46.5 million in pay-as-you-go incentives along the way.
That's the part the national studies don't capture. Retail brought people, and people brought more retail. The mall a lot of us assumed was on its way out is turning into a neighborhood.
Downtown Libertyville: What Walkability Looks Like in a Price
Downtown Libertyville was added to the National Register of Historic Places in 2025, and new spots keep opening along Milwaukee Avenue, including a new coffee shop and a Korean-inspired restaurant earlier this year.
Libertyville homes sold for a median of about $625,000 over the six months ending in August, based on closings tracked by Resideline. The Lake County median in September was $409,990, according to MRED InfoSparks.
To be fair to the math, not all of that gap is downtown. Schools, lot sizes, and the age of the housing stock do a lot of the work. But being able to walk to dinner is part of what buyers here are paying for, even if nobody can price it as its own line on a CMA.
Mundelein: Rooftops First, Shops Next
Downtown Mundelein is the one to watch. According to current commercial listing materials for the area, the blocks around the Metra station have absorbed about 530 new homes, including Station 250 and Cardinal Square, and that number passes 770 within a half mile once the projects under construction finish.
Rooftops usually come first and shops follow, and downtown Mundelein is in that gap right now. The village bought land around village hall in 2012 to move the downtown past its industrial roots, and the housing has arrived. The retail is still catching up to the residents.
Farther out, the Wirtz family's proposed Ivanhoe Village would add about 3,200 homes plus retail and light industrial on roughly 773 acres east of Route 60, built in phases over 25 years, according to the Daily Herald. It's still working through the planning process, and plenty can change before anyone breaks ground.
If You're Buying
Measure drive time, not distance. Two easy miles beat one congested one.
Visit at the busiest hour. Drive by at noon on a Saturday before you write an offer. That's when you find out whether the shopping center is a convenience or a headache.
Look at what's planned, not just what's built. Village planning and zoning agendas are public, and the vacant parcel down the street won't stay vacant forever.
Check what's behind the house. A shopping center is a perk until its loading dock is your view.
If You're Selling
Nearby shopping and walkability belong in your listing description. Buyers care, and they search for it.
What they don't do is automatically add to your price. A store opening down the road doesn't mean your home is worth $20,000 more next month. Recent comparable sales in your neighborhood set the price. Headlines don't.
Frequently Asked Questions About Retail and Home Values
Does living near a Costco increase home value?
Sometimes. A study of Costco openings from 2002 to 2020 found no change on average, but values within five miles rose about 5% to 8% in denser and higher-income counties, measured two and a half years after opening.
Is it bad to live right next to a big-box store?
It can be. In the Fresno-Clovis area, homes near a Costco that moved away rose about 8% to 9% relative to similar neighborhoods, which researchers tied to the store traffic leaving.
Which Lake County community has the highest retail sales?
Vernon Hills, with more than $2 billion in 2025, according to retail consultant John Melaniphy.
What's happening at Hawthorn Mall in Vernon Hills?
It's being redeveloped into a mixed-use destination. The Domaine's 311 apartments opened in 2024, 282 more are planned by 2028, a $5 million interior refresh wraps up in fall 2026, and outward-facing storefronts are expected to start in early 2027.
Do walkable downtowns raise home prices in Lake County?
Walkable towns like Libertyville sell well above the county median, but schools, lot sizes, and housing stock contribute too. Walkability is one factor buyers pay for, not the whole price.
Should I price my home higher because a new store is opening nearby?
Not on its own. Mention the convenience in your listing, and let recent comparable sales in your neighborhood decide the price.
Wondering What Your Neighborhood Is Really Worth?
If you're weighing a move, or just want to know how your street stacks up against the rest of Lake County, I'm happy to pull the recent sales and talk it through. What's nearby matters. What sold nearby matters more.
I work exclusively with buyers and sellers across Lake County, Illinois.
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About Michael Steber
Michael is a licensed REALTOR® and Designated Managing Broker with Keller Williams North Shore West, working exclusively with buyers and sellers across Lake County, Illinois. He writes The Weekly Welcome, a newsletter on local real estate, homeownership, and the occasional thing that has nothing to do with either.
This article covers communities including Grayslake, Libertyville, Gurnee, Winthrop Harbor, Wadsworth, Round Lake, Vernon Hills, Mundelein, Lake Bluff, Lake Forest, North Chicago, Waukegan, Zion, and surrounding Lake County communities. Sources: Silas Kwok, Vancouver School of Economics (Costco openings, 2002–2020); Fresno State relocation study (2026); The Close (September 21, 2026); Daily Herald (July 25, 2026, and Ivanhoe Village coverage); Resideline Market Watch (September 2026); MRED InfoSparks (September 2026); Daily Herald coverage of downtown Libertyville; commercial listing materials for downtown Mundelein. This is general educational information, not appraisal or financial advice — for a value on your specific home, ask for a comparative market analysis.