Living Near a Trader Joe's Can Seriously Boost the Value of Your Home—Yes, Really
There are so many reasons to love Trader Joe's—the friendly environment, fantastic flower selection, unique private label products—but new research is giving us one more major reason. A recent study from ATTOM Data Solutions, a national property database for businesses and consumers, examined the impact of several popular grocery stores on the U.S. housing market and found living near a Trader Joe's can give homeowners a major boost on value and return on their investment.
The group's 2019 Grocery Battle Analysis compared the impact of living near a Trader Joe's, Whole Foods and Aldi store for nearly 2,000 zip codes nationwide. Researchers looked at current average home values, five-year home price appreciation, current average home equity, home seller profits and home flipping rates.
The average home seller return on investment (ROI) for these zip codes was 37 percent, but living near a Trader Joe's boosted that ROI percentage to a whopping 51 percent. Living near a Whole Foods saw a 41 percent return, while living near an Aldi had a 41 percent return. Additionally, those who own a home near a Trader Joe's own an average 37 percent equity in their homes, compared to the national average of 25 percent. Whole Foods saw 31 percent equity, while Aldi saw only 20 percent.
However, if you're looking to flip a home, that's a whole other story. Properties near an Aldi location show to have nearly double the average gross flipping percentage rate of those near a Whole Foods or Trader Joe's. They also had a nine percent higher five-year home price appreciation than Trader Joe's and a 10 percent higher appreciation than Whole Foods.
Take this data with a grain of salt, as it's possible these grocery stores are going into areas they've already identified as growing. But, realtors always say, "Location, location, location" for a reason, and you may want to consider your proximity to a popular grocery store next time you're in the market for a new property! We're personally more than happy to move closer to Trader Joe's, as it will not only save us money on groceries but could also help us make a little extra along the way.