How Grocery Stores Impact U.S. Home Values
January 5, 2021
According to ATTOM Data Solutions' annual 2020 Grocery Store Wars analysis, living near a Trader Joe's, a Whole Foods or an ALDI might positively affect a home's value - as a homebuyer based on home price appreciation and home equity, or as an investor looking for the best home flipping returns and home seller ROI.
While homes near a Trader Joe's realized an average 5-year home price appreciation of 35 percent, and homes near a Whole Foods saw an average appreciation of 33 percent, ALDI had a slight advantage at 41 percent.
However, not only does Trader Joe's lead the pack for homebuyers in average home value at $644,558, but it also takes the lead in home equity with homeowners earning an average of 37 percent ($255,066) equity, compared to Whole Foods at 33 percent ($191,380) and ALDI at 26 percent ($71,204). The average value for homes near a Whole Foods is $532,224, and $250,850 for homes near an ALDI.
The average equity for all zip codes with these grocery stores nationwide is 29 percent.
Properties near an ALDI are ripe for investors, with an average gross flipping ROI of 58 percent, compared to properties near a Whole Foods which had an average gross flipping ROI of 36 percent, and Trader Joe's at 30 percent.
Although properties near an ALDI are seeing less of an average home seller ROI than properties near a Trader Joe's or Whole Foods, investors are still gaining with an average home seller ROI of 41 percent. The average home seller ROI for properties near a Trader Joe's is 51 percent, and 43 percent for properties near a Whole Foods.
The average home seller ROI for all zip codes with these grocery stores nationwide is 43 percent.
Source: How Grocery Stores Impact U.S. Home Values World Property Journal (December 30, 2020) Michael Gerrity