A new national study of grocery stores’ impacts on nearby home values found the biggest payoff in neighborhoods with a Trader Joe’s.
ATTOM Data Solutions, a property database company, found that the average home value near Trader Joe’s is $608,305, compared to $521,142 near Whole Foods and $222,809 near ALDI, a chain with about 2,000 locations, mostly east of the Mississippi.
According to ATTOM’s 2019 Grocery Store Battle analysis, homes near a Trader Joe’s realized an average home seller ROI of 51%, compared to homes near a Whole Foods with an average home seller ROI of 41% and ALDI at 34%. The average home seller ROI for all zip codes with these grocery stores nationwide is 37%.
In addition, homes near a Trader Joe’s have added equity, owning an average 37% equity in their homes ($247,445), while homes near Whole Foods had an average of 31% equity ($187,035) and homes near ALDI had average 20% equity ($53,650). The average equity for all zip codes with these grocery stores nationwide is 25%.
Trader Joe’s, a California-based chain with nearly 500 locations across the country, is beloved for its relatively low prices and wide selection of store-brand items. Its first Idaho location, at 300 S Capitol Blvd in downtown Boise, opened in 2014. A second is rumored to be coming to Meridian, which is one of the nation’s fastest-growing communites.
While Trader Joe’s was the clear winner for home values, ATTOM called the ALDI neighborhoods “an investor’s cornucopia” with an average gross flipping ROI of 62%, compared to properties near a Whole Foods which had an average gross flipping ROI of 35% and Trader Joe’s at 31%. The average gross flipping ROI for all zip codes with these grocery stores nationwide is 52%.
Properties near an ALDI have seen an average 5-year home price appreciation of 42%, compared to 33% appreciation for homes near a Trader Joe’s, and 31% appreciation for homes near a Whole Foods. The average appreciation for all zip codes with these grocery stores nationwide is 38%.
For the study, ATTOM looked at current average home values, 5-year home price appreciation from YTD 2019 vs. YTD 2014, current average home equity, home seller profits, and home flipping rates on 1,859 zip codes nationwide with a least one Whole Foods store, one Trader Joe’s store and one ALDI store.