Fancy grocery shops can increase native dwelling values, evaluation finds
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If you see an ALDIs, Trader Joes, or Whole Foods, consider buying a property nearby.
Living near these grocery stores not only places you in proximity to a fine selection of meats and cheeses, but also positively impacts the value of your property, according to CoreLogic’s 2022 grocery store wars analysis.
Properties near these stores have experienced a notable increase in their average home price appreciation over the past five years.
From 2017 to 2022 homes located near an ALDI’s realized an average home price appreciation of 58%. Homes located near a Trader Joe’s or a Whole Foods were close behind with a five-year average home price appreciation of 49% and 45%, respectively.
Properties near an ALDI’s — which on average are worth less — can be a smart investment. These homes have an elevated return on investment for both investors and home sellers, the report argues.
The average gross return on investment for flipping these properties is 54%, compared to properties near a Whole Foods which had an average flipping ROI of 28% and Trader Joe’s at 25%.
Meanwhile, the average home seller return on investment for properties near an ALDI’s was 61%, while properties near a Trader Joe’s have a ROI of 58%, and 51% for properties near a Whole Foods.
But while homes located near an ALDI’s have been growing in value for the past five years, properties near Trader Joe’s on average take the cake of being worth more. Per the report, homeowner’s near a Trader Joes have an average home value at $987,923. Homes near a Whole Foods have an average value of $891,416, while homes near an ALDI have an average value of $321,116.
The report highlights that homeowners living near a Trader Joe’s also take the lead in home equity, earning an average of 50% ($520,842) equity compared to Whole Foods at 45% ($433,311) and ALDI at 38% ($132,643).
“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,” said Rick Sharga, executive vice president of market intelligence at Attom, in a statement.
“And that impact can vary pretty widely depending on which grocery store is in the neighborhood.”