It looks like Clarksville is finally getting a Costco—and if you have spent any time on local social media, you already know people are excited.

Costco is planned as the anchor tenant for Freedom Farms, a 220-acre mixed-use development between Governor’s Square Mall and Interstate 24. The project is still pending final Montgomery County Commission approval, but construction is currently expected to begin in spring 2027, with Costco projected to open in spring 2028.

For Clarksville residents, this means easier access to bulk groceries, household essentials and, of course, the famous $1.50 hot dog combo. But for homeowners and future buyers, the more interesting question is:

What could the “Costco Effect” mean for Clarksville real estate?

What Is the “Costco Effect”?

The “Costco Effect” is an informal term used to describe the economic activity, additional development and potential increase in buyer interest that may follow the opening of a Costco.

Costco does not choose its locations randomly. A new warehouse requires a substantial customer base, strong household spending and convenient regional access. Because of this, Costco’s decision to enter a market is often viewed as a sign that the company is confident in the area’s population, economy and continued growth.

A Costco can also function as an anchor retailer. Once it commits to a development, restaurants, service providers and other national retailers may become more interested in locating nearby.

That can make the surrounding area more convenient and desirable—but does it actually increase home values?

Does Costco Increase Nearby Home Values?

The honest answer is: sometimes, but not automatically.

A University of British Columbia study examined 84 Costco openings across the United States between 2002 and 2020. Researchers found no statistically significant change in nearby property values on average.

However, the results were different in certain types of communities. Within 2½ years of a Costco opening, the study found:

• A 7.9% increase in property values within five miles in areas with above-average population density
• A 5.2% increase in property values within five miles in areas with above-average household income

Those findings do not mean every home near Clarksville’s Costco will suddenly be worth 5% to 8% more. The study identified a relationship in certain markets—not a guaranteed return for every individual property.

Home values will continue to depend on factors such as:

• Housing supply and buyer demand
• Mortgage rates and affordability
• Neighborhood location
• Property condition and updates
• School zones
• Commute times
• Traffic and road infrastructure
• Proximity to shopping, restaurants and services

The best way to think about the Costco Effect is as one more positive ingredient in Clarksville’s long-term growth story, rather than a promise of instant appreciation.

You can review the University of British Columbia study here.

Why Freedom Farms Matters Beyond Costco

Costco is only one part of the much larger Freedom Farms development.

Current plans include retail and residential parcels, more than 600 apartments and condominiums, and an extension of Spring Creek Parkway through the development to Ted Crozier Sr. Boulevard.

According to figures released by the Clarksville-Montgomery County Economic Development Council, Costco alone is projected to bring:

• A $55.2 million capital investment
• Approximately $250 million in annual sales
• An estimated $6.2 million in annual sales-tax revenue
• Approximately 600 direct and 201 indirect jobs

The projections include approximately $4.57 million in annual revenue for Clarksville-Montgomery County Schools and $1.65 million for the City of Clarksville.

These estimates are based on the project moving forward as planned, but they demonstrate why this announcement is about much more than getting a new place to shop.

Costco could help create a ripple effect that includes:

• New jobs and increased local spending
• Additional restaurants and retail options
• Road and infrastructure investment
• More regional visitors from surrounding counties and Southern Kentucky
• Increased interest in nearby commercial and residential development
• Additional tax revenue for schools and local services

You can read more about the current plans for Costco and Freedom Farms here.

What Could This Mean for Clarksville Homeowners?

For current homeowners, Costco adds another recognizable amenity that can help make Clarksville appealing to future buyers.

This may be especially meaningful for military families relocating to or from Fort Campbell. When buyers compare communities, they consider more than the house itself. They look at shopping, healthcare, restaurants, schools, commute routes and how convenient everyday life will be.

Clarksville has grown tremendously, but residents still frequently travel toward Nashville for shopping and entertainment that is not available locally. A Costco—and the additional businesses it could attract—helps Clarksville feel more established as a destination of its own.

Homes with convenient access to the Freedom Farms development and I-24 may become more appealing to some buyers. However, proximity will not affect every property in the same way.

In real estate, there is a meaningful difference between being conveniently close and being too close.

A home with easy access to Costco, restaurants and new services could benefit from the added convenience. A property directly affected by heavier traffic, noise or commercial construction may be viewed differently. The specific location of the home will matter more than its simple distance from Costco.

What Should Clarksville Buyers Consider?

Buyers should not purchase a home solely because they expect Costco to raise its value.

However, planned development is absolutely worth considering when evaluating a neighborhood’s long-term potential. Buyers looking in the surrounding area should pay attention to:

• Access to Interstate 24 and major commuter routes
• The planned Spring Creek Parkway extension
• Future retail and residential construction
• Current and projected traffic patterns
• The balance between convenience and privacy
• Undeveloped land near the property
• How the surrounding area may change before Costco opens

The best opportunity may not be the home closest to Costco. It could be a home with convenient access to Freedom Farms while remaining comfortably removed from the busiest traffic.

A knowledgeable local real estate agent can help you evaluate not only what surrounds a property today, but what is planned for the area in the years ahead.

Will Traffic Increase Near Freedom Farms?

Almost certainly.

A Costco generates substantial customer traffic, and Freedom Farms is expected to include other retailers and hundreds of residential units. The planned road extension should improve connectivity, but buyers and homeowners near the development should expect traffic patterns to evolve as construction progresses and businesses begin opening.

That does not necessarily make the development negative for nearby real estate. Improved roads, better access and additional amenities can all increase an area’s appeal. However, the effect will vary depending on the location of an individual property, its access points and how close it is to the most heavily traveled roads.

This is why blanket claims that “all nearby home values will rise” should be treated cautiously.

Costco Is Responding to Clarksville’s Growth

Costco is not creating Clarksville’s growth—it is responding to it.

Clarksville has experienced years of population growth, new construction, expanding healthcare, continued military demand and significant business investment. Its location along I-24 also allows major retailers to serve not only Clarksville and Montgomery County, but Fort Campbell and communities throughout Southern Kentucky.

Costco’s decision to pursue a Clarksville location sends a strong message: national retailers are paying attention to the same growth residents and local real estate professionals have been watching for years.

That may be the most important part of the Costco Effect.

The store itself will provide a new shopping option, but its arrival can also strengthen confidence in Clarksville as a growing regional market capable of attracting additional investment.

The Bottom Line

Costco will not make every Clarksville home more valuable overnight. Real estate simply does not work that way.

What it can do is strengthen Clarksville’s appeal, create jobs, support additional commercial development and give future residents another reason to feel comfortable putting down roots here.

For homeowners, Costco is another positive addition to Clarksville’s long-term story. For buyers, it is a reminder to look closely at planned development, road improvements and how a neighborhood may change over time.

And for everyone who currently drives to the Nashville area for a Costco run, spring 2028 cannot get here soon enough.

Thinking About Buying or Selling in Clarksville?

Whether you are purchasing your first home, preparing for a military move or wondering how Clarksville’s continued development could affect your property, I would be happy to help you look at the bigger picture.

Contact Kimberly Kielor, REALTOR® with Century 21 Platinum Properties, for local guidance on buying or selling a home in Clarksville and the Fort Campbell area.

Development plans, timelines and financial projections are subject to change. This article is for general informational purposes and should not be interpreted as a guarantee of future property appreciation.