Which Grocery Store Lifts Home Values Most?
Daily Real Estate News | Friday, August 04, 2017
Homeowners living near a Trader Joe’s grocery store saw their property values increase an average 67 percent over five years, according to a study released by real estate data firm ATTOM Data Solutions. Owners close to Whole Foods—a trendier and pricier grocery option—didn’t fare as well, garnering 52 percent appreciation in home value over the same time period. Those with an Aldi nearby saw a 51 percent increase.
The average home price appreciation for ZIP codes with all three grocery stores was 54 percent, according to ATTOM Data Solutions. For the study, researchers culled U.S. Department of Housing and Urban Development data on sale and rental prices in ZIP codes nationwide that have at least one of each grocery store.
Homeowners living near a Trader Joe’s also added the most equity: 36 percent of their home’s value (or $232,439). Homeowners near Whole Foods added 31 percent equity ($187,925), and owners near Aldi added 18 percent ($46,352), according to the study.
Real estate investors, however, may earn the most profit off homes near an Aldi, the German-owned discount grocery store. Investors who flipped such homes earned an average return of 69 percent, according to ATTOM Data Solutions’ research. In comparison, flips near Whole Foods saw an average 41 percent ROI, and flips near Trader Joe’s earned an average 36 percent.