The Supermarket Effect on Home Values
December 23, 2020
Of all the grocery stores homeowners could live near, those close to a Trader Joe’s tend to have a higher home value than owners near other stores, according to ATTOM Data Solutions’ 2020 Grocery Store Wars. The study factored in current average home values, 5-year home price appreciation from 2015 to 2020, current average home equity, home seller profits, and home flipping rates.
Homes near a Trader Joe’s have an average value of $644,558, according to the study. Homeowners near the specialty grocery store chain also have earned an average of $255,066 in home equity over the last five years, compared to a $191,380 boost for owners living near a Whole Foods and $71,204 for owners living near an Aldi. The average values for homes near a Whole Foods or an Aldi are $532,224 and $250,850, respectively, according to the study.
Investors, however, may want to eye properties near an Aldi, which have averaged a 58% ROI for home flippers, according to ATTOM Data Solutions’ analysis. Properties near a Whole Foods or Trader Joe’s, by comparison, averages ROIs of 36% and 30%, respectively. Take a look at the infographic below from ATTOM Data Solutions with a breakdown of the study’s findings.
Updated: March 05, 2021