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It’s no secret that being near a grocery store helps boost home values — but the brand of supermarket matters more than you may think.
A new analysis from the real estate data curator Attom breaks down the different effects popular supermarkets — Trader Joe’s, Whole Foods and Aldi — have on home values, and the ways they benefit homeowners and property investors differently.
“Smart homebuyers might want to consider where they’ll do their grocery shopping when they’re shopping for a new home.” Rick Sharga, executive vice president of market intelligence at Attom, 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.”
The analysis found that being near an Aldi stands to help homeowners the most in terms of price appreciation. Homes located in the same zip code as an Aldi saw an average five-year home price appreciation of 58 percent, while those in the same zip code as a Whole Foods saw 45 percent and those with a Trader Joes saw 49 percent.
However, homes located near a Trader Joe’s have the advantage of higher values and equity, with homes located near a Trader Joes logging an average home value of $987,923 and homeowners earning an average of 50 percent equity.
Homes located near a Whole Foods were found to be worth an average of $891,416 with homeowners earning an average equity of 45 percent, while homes located near an Aldi — which owns Trader Joe’s — were worth an average of $321,116 with homeowners earning 38 percent equity on average.
But for investors looking to flip houses, Aldi may be the beacon they are looking for, with an average gross flipping return on investment of 54 percent, compared to 28 percent for Whole Foods and 25 percent for Trader Joes.
Non-investor sellers of homes near an Aldi stand to benefit as well, with those homes posting an average home seller ROI of 61 percent compared to 58 percent for Trader Joes and 51 percent for Whole Foods.