How close if your house to Whole Foods or Trader Joe’s? Why does it matter, you ask? Well, proximity to your nearest supermarket actually make a difference, so you should take that into consideration when you’re looking to buy your next house.
ALDI
ATTOM Data Solutions has released a report that details that relationship between grocery stores ALDI, Trader Joe’s, and Whole Foods and how they impact the local housing market for both investors and also buyers. They looked at data from 2015-2020 home appreciation, the average of home equity, home values, home seller profits, and the average ROI flipping rates for investors in areas with zip codes that have one of the aforementioned supermarkets.
The study found that over those years, home values appreciated around the country, but zip codes with a followed by 41% for ALDI, Trader Joe’s appreciated by 35%, and 33% for Whole Foods. When it came to home value, Trader Joe’s led, as properties near a TJ’s valued at $644,558. Neighborhood with Whole Foods had an average value of $532,224, and homes near Aldi averaged at $250,850.
Home equity showed fluctuations based on the local grocery store as well. Houses near Trader Joe’s had 37% equity, homes near Whole Foods came next with 33% average equity, and ALDI coming in with 26% average equity. The national average is 29% for zip codes with these supermarkets.
Since neighborhoods near ALDI have lower home values, these are great for investors. The gross flipping ROI in neighborhoods with an ALDI come out to an average of 58%. Meanwhile, the ROI for Whole Foods neighborhoods is 36% and 30% for Trader Joe’s areas.
Trader Joe’s
So why do these grocery stores affect property values so much? Well, it’s clearly because these three different stores target different portions of the population. Whole Foods tends to target millennials and those willing to spend more on organic products that are eco-friendly.
While Trader Joe’s is considered a Whole Foods competitor, TJ’s is more focused on s fun shopping experience rather than being a fancy grocery store like Whole Foods. ALDI provides shoppers with affordable quality prices sans frills. That’s why home values near ALDI tend to be lower.
It’s important to take external factors into consideration while looking to invest in homes. Check out the neighborhood and its supermarkets, cars, shopping options, people, and all the other available amenities. These qualitative data points will help you invest.
Whole Foods
