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11/22/2022

Nearby Grocery Stores Can Affect Housing Market: Analysis

Attom identifies Trader Joe’s as tops for homebuyers, while Aldi is most attractive for investors
Bridget Goldschmidt
Managing Editor
Bridget Goldschmidt profile picture
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Grocery Store Wars Infographic Main Image
Analysis from Attom reveals how grocery store locations impact the U.S. housing market.

According to Attom’s “2022 Grocery Store Wars” analysis, living near a Trader Joe’s, a Whole Foods Market or an Aldi could affect a home’s value – based on home price appreciation and home equity for a homebuyer, or the best home-flipping returns and home seller return on investment (ROI) for an investor.

While homes close to a Trader Joe’s realized an average five-year home price appreciation of 49%, and homes near a Whole Foods saw an average appreciation of 45%, Aldi had a slight edge, at 58%. However, not only does Trader Joe’s come out on top for homeowners, with an average home value at $987,923, but it also leads in home equity, with homeowners earning an average of 50% ($520,842) equity, versus Whole Foods at 45% ($433,311), and Aldi at 38% ($132,643). The average value for homes close to a Whole Foods is $891,416, while it’s $321,116 for homes near an Aldi.

Meanwhile, properties near an Aldi are highly attractive for investors, with an average gross flipping ROI of 54%, compared with properties close to a Whole Foods, which had an average gross flipping ROI of 28%, and Trader Joe’s, at 25%. Properties near an Aldi have an average home seller ROI of 61%, while those near a Trader Joe's are at 58%, and those close to a Whole Foods, 51%

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 Attom’s “2022 Grocery Store Wars”
(Source: Infographic from "Attom 2022 Grocery Store Wars Analysis: How Grocery Store Locations Impact The U.S. Housing Market")

“Smart homebuyers might want to consider where they’ll do their grocery shopping when they’re shopping for a new home,” noted Rick Sharga, EVP of market intelligence at Irvine, Calif.-based Attom. “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.”

For its analysis, the curator of real estate data looked at current average home values, five-year home price appreciation for year to date 2022 versus year to date 2017, current average home equity, home seller profits and home-flipping rates in U.S. ZIP codes with at least one Whole Foods store, one Trader Joe’s store and one Aldi store.

The first certified-organic national grocer, Austin, Texas-based Whole Foods has more than 500 stores in the U.S., Canada and the U.K. The company is a wholly owned subsidiary of Seattle-based Amazon, which is No. 2 on The PG 100,  Progressive Grocer’s 2022 list of the top food and consumables retailers in North America. With more than 2,100 stores across 38 states, Batavia, Ill.-based Aldi U.S. is No. 24 on The PG 100, while Monrovia, Calif.-based Trader Joe’s, with more than 500 stores in 40-plus states, is No. 27.

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