Could Your House Be Worth More if it’s Located Near a Trader Joe’s or Whole Foods?
Written by
Vance Cariaga
Edited by
Nicholas Morine
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If you think living near a Trader Joe’s is just about quick trips to pick up tri-color spaghetti or mini spicy pumpkin samosas, think again. Your home value could be getting a lift as well.
Homes located near a Trader Joe’s have an average value of $987,923, according to a recent survey from Attom Data Solutions, a provider of real estate and property data. That topped the list of three chains analyzed in the survey, with the others being Whole Foods and Aldi. The average home value was $891,416 for homes located near Whole Foods and $321,116 for those near Aldi.
Trader Joe’s also leads the wayin its impact on home equity, with homeowners who live near the chain earning an average of 50% equity compared to 45% at Whole Foods and 38% at Aldi.
In terms of home appreciation, however, Aldi gets the nod. Homes near an Aldi realized an average five-year home price appreciation of 58%, outpacing the appreciation rates at Trader Joe’s (49%) and Whole Foods (45%).
In the analysis, released last week, Attom looked at current average home values, home price appreciation for 2022 vs. 2017, current average home equity, home seller profits, and home flipping rates in U.S. zip codes with a least one Whole Foods store, one Trader Joe’s store and one Aldi store. One thing the results underscored is the premium potential home buyers put on living near a grocery store.
“Smart homebuyers might want to consider where they’ll do their grocery shopping when they’re shopping for a new home.” Rick Sharga, Attom’s executive vice president of market intelligence, said in a statement. “It turns out that being located near grocery stores isn’t only a matter of convenience for homeowners but can have a significant impact on equity and home values as well. And that impact can vary pretty widely depending on which grocery store is in the neighborhood.”
Because of the home value appreciation, investors also stand to gain from buying homes near a grocery — especially an Aldi. Properties near an Aldi have an average gross flipping return on investment of 54%, according to the Attom analysis. In contrast, properties near a Whole Foods had an average gross flipping ROI of 28%, while those near a Trader Joe’s had an ROI of 25%.
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But if you live near a Trader Joe’s, you might get another financial benefit from low prices. An analysis from Consumers’ Checkbook found that overall, Trader Joe’s prices were 19% lower than the average prices at other stores surveyed — including QFC, Whole Foods, Albertsons, Safeway, Target and Fred Meyer.
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