HOUSTON – (By Dale King, Realty News Report) – People have long said “you are what you eat.” A recent study from ATTOM Data Solutions suggests a modern financial twist: where you buy groceries may influence your home’s value.
ATTOM researchers examined whether proximity to different grocery chains — Trader Joe’s, Whole Foods or ALDI — correlates with residential real estate values and investment returns.
The firm analyzed 1,859 ZIP Codes nationwide that each contain at least one Trader Joe’s, one Whole Foods and one ALDI. Their findings provide practical insights for homebuyers, sellers and investors.
ATTOM’s analysis found that homes near Trader Joe’s stores tend to command the highest average values. The average home value in ZIP Codes containing a Trader Joe’s was $608,305, compared with $521,142 for areas with a Whole Foods and $222,809 for ZIP Codes with an ALDI.
In terms of seller returns, residences near Trader Joe’s showed an average seller return on investment (ROI) of 51 percent. Homes near Whole Foods averaged a 41 percent seller ROI, while those near ALDI averaged 34 percent. Across all analyzed ZIP Codes with these grocery retailers, the average seller ROI was 37 percent.
Equity levels followed a similar pattern. Homeowners near Trader Joe’s held, on average, 37 percent equity—about $247,445 in value. Near Whole Foods, average equity was 31 percent, or roughly $187,035. Homes in ALDI ZIP Codes carried about 20 percent equity, or $53,650 on average. The overall average equity across all ZIP Codes with these grocery stores was 25 percent.
Investors seeking flip opportunities appeared to benefit most from properties in ALDI ZIP Codes. Homes near ALDI delivered an average gross flipping ROI of 62 percent, compared with a 35 percent average gross flip return for homes near Whole Foods and 31 percent near Trader Joe’s. The average gross flipping ROI for all ZIP Codes with these grocery stores was 52 percent.
Five-year home price appreciation also varied by grocer. Properties near ALDI experienced an average five-year appreciation of 42 percent. Homes near Trader Joe’s appreciated about 33 percent, while properties near Whole Foods rose roughly 31 percent over the same period. The average five-year appreciation across all analyzed ZIP Codes was 38 percent.
For this report, ATTOM evaluated current average home values, five-year price appreciation (comparing year-to-date 2019 with year-to-date 2014), current average home equity, home seller profits and home flipping activity.
Grocery locations used in the analysis were sourced from the U.S. Department of Agriculture.
Aug. 8, 2019 Realty News Report Copyright 2019
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