How do grocery stores affect home values?

A recent MReport discusses how a neighborhood’s nearest supermarket affects its home values. Experts from ATTOM Data Solutions used their annual Grocery Store Wars analysis to determine how grocery stores impact home values. Data analysts looked at those who lived near a Trader Joe’s, a Whole Foods, or an ALDI and analyzed home price appreciation and home equity. According to the research, “Trader Joe’s leads the pack for homebuyers, while ALDI wins among investors; Average home value near Trader Joe’s is $644,558, compared to $532,224 near Whole Foods and $250,850 near ALDI”. To reach these conclusions, ATTOM studied average home value, 5-year home price appreciation, current average home equity, home seller profits, and home flipping rates in areas with at least one Whole Foods, Trader Joe’s, and ALDI store.

WHAT ELSE DID THEY FIND?

ATTOM experts discovered homes near Trader Joe’s have an average 5-year home price appreciation of 35%; for Whole Foods, the number is 33%; and ALDI showed a 41% appreciation. Trader Joe’s also leads in home equity, with homeowners earning about 37%, which is roughly $255,000. Those near Whole Foods earn about 33%. ALDI neighbors earn 26%, which is approximately $71,204. Researchers concluded that investors should look for opportunities near an ALDI. Homes surrounding an ALDI have an average gross flipping ROI of 58%, compared to properties near a Whole Foods which had an average gross flipping ROI of 36%, and Trader Joe’s at 30%. According to the report, “The average home seller ROI for properties near a Trader Joe’s is 51%, and 43% for properties near a Whole Foods. The average home seller ROI for all zip codes with these grocery stores nationwide is 43%”.

Click here to read the full MReport to learn more!