Retailers

Being located near these grocery chains can drive up a home's value

Trader Joe's leads the pack for homebuyers, as an average home value near Trader Joe's is $987,923, compared to $891,416 near Whole Foods, according to a new analysis from Attom.
Illustration courtesy: Attom

Location, location, location. This real estate maxim now seems to apply to homes located near grocery stores, according to new data released on Tuesday by Irvine, California-based Attom Data Solutions, a provider of real estate and property data.

The firm's 2022 Grocery Store Wars analysis shows how living near a Trader Joe's, a Whole Foods or an Aldi might boost 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.

"Smart homebuyers might want to consider where they'll do their grocery shopping when they're shopping for a new home," said Rick Sharga, EVP of market intelligence at Attom, in a statement. "It turns out that being located near grocery stores isn't only a matter of convenience for homeowners, but can have a significant impact on equity and home values as well. And that impact can vary pretty widely depending on which grocery store is in the neighborhood."

While homes near a Trader Joe's realized an average five-year home price appreciation of 49%, homes near a Whole Foods saw an average appreciation of 45% and Aldi had an advantage at 58%.

According to the latest findings for homeowners, it is Trader Joe's which leads the pack, as an average home value near Trader Joe's is $987,923, compared to $891,416 near Whole Foods. The average value of homes near discount grocer Aldi is $321,116, Attom reported.

From an investor perspective, properties near an Aldi is the solid choice, with an average gross flipping ROI of 54%, compared to properties near a Whole Foods, which had an average gross flipping ROI of 28 % and Trader Joe's at 25%.

For the analysis, Attom looked at current average home values, five-year home price appreciation for year-to-date 2022 vs. year-to-date 2017, current average home equity, home seller profits and home flipping rates in U.S. zip codes with at least one Whole Foods store, one Trader Joe's store and one Aldi store.

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