How do grocery stores impact a home’s value?

Trader Joe’s, Whole Foods and ALDI: Which grocery store best benefits homeowners nearby?

According to a recent report from ATTOM Data Solutions, homeowners near a Trader Joe’s saw the most home price appreciation.

On average, homeowners by a Trader Joe’s saw a 5-year home appreciation of 67 percent, 15 percent higher than those residing near a Whole Foods, and 16 percent more compared to those living near ALDI. On average, the average 5-year home appreciation is 54 percent for homes located within the same zip code as one of these grocery stores.

Those living near Trader Joe’s also have the upper hand in equity. Those near a Trader Joe’s own, on average, 36 percent equity, or $232,439 in their homes. Homeowners near Whole Foods had an average home equity of 31 percent, or $187,925, while those homeowners by ALDI had an average of 18 percent equity, or $46,352. The average for homeowners in zip codes with these stores is 24 percent.

While Trader Joe’s reigns king among homeowners, ALDI is best for investors, the report found. Homes near an ALDI averaged a return on investment of 69 percent, while those near Whole Foods averaged 41 percent, compared to 36 percent near Trader Joe’s. Across zip codes near the stores, the average gross flipping ROI is 57 percent.

As for rentals, homes near an ALDI averaged a gross rental yield of 10 percent, while those near a Whole Foods averaged 6 percent average gross rental, and 5 percent for properties near Trader Joe’s. The average across these zip codes is 8 percent.

In your area, do you find any correlation between closeness to a specific grocery chain and home costs?