BAM’s Key Details:
- ATTOM’s 2022 Grocery Store Wars analysis reveals which grocery store chain is best for home values
- One chain is a clear winner for homeowners looking to build home equity
- Another chain trounces the other two as the best for real estate investors and house flippers
If you could inherit a home near a Trader Joe’s, Whole Foods, or Aldi, which would be your pick?
Before you choose based on your favorite food brands, consider the following: your choice could have a measurable impact on your home’s value.
That’s right, According to ATTOM’s 2022 Grocery Store Wars analysis, one of these stores comes out on top for homeowners looking to gain equity, and another is the clear winner for investors.
So, which is best for your home’s long-term value or house-flipping ROI?
Read on to find out.
The methodology behind ATTOM’s analysis
For their analysis, ATTOM—a leading curator of real estate data—looked at the following data for U.S. zip codes with at least one Trader Joe’s, one Whole Foods, and one Aldi:
- Current average home values
- 5-year home price appreciation for YTD 2022 vs. YTD 2017
- Current average home equity
- Home seller profits (ROI)
- Home flipping rates
ATTOM’s infographic illustrates the results of their analysis.
Smart homebuyers might want to consider where they’ll do their grocery shopping when they’re shopping for a new home. 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.
Trader Joe’s rules for homeowners
Turns out, Trader Joe’s is the winner for homeowners looking at their home’s market value and home equity. The average home value near Trader Joe’s is $987,923—compared to its closest competitor, Whole Foods, with an average home value of $891,416.
Aldi is in third place with an average home value of $321,116.
Home equity is the second category where Trader Joe’s takes the trophy, with homeowners earning an average of 50% ($520,842) equity—compared to 45% ($433,311) for homeowners living near a Whole Foods and 38% ($132,643) for those living near an Aldi.
Aldi rules for investors
Here comes the flipside. The lower prices of homes near Aldi make it a better choice for investors and home flippers. Homes near an Aldi have the highest 5-year home appreciation rate — 58% — compared to 49% for Trader Joe’s and 45% for Whole Foods.
Properties near Aldi also have the highest home seller ROI — 61% — compared to 58% for Trader Joe’s and 51% for Whole Foods.
Finally, Aldi is the number one choice for house-flippers, with an average gross flipping ROI of 54% for properties near an Aldi—compared to 28% for properties near Whole Foods and 25% for properties near Trader Joe’s.
Top takeaways for real estate agents
Get clear on your client’s goals when they’re shopping for a new property:
- Are they looking for a long-term home to accommodate their growing family?
- Are they planning to renovate and then sell the home for a profit?
- Are they looking for an investment property they can rent out for income?
Knowing their why will help you choose the best properties for them, based on their short- and long-term goals.