Just as homebuyers might consider the school system and local amenities in a town they’re thinking about moving to, it might be time to add add ‘proximity to the nearest grocery store’ as something that can increase their home’s value over time, a new report indicates.
ATTOM’s latest 2022 Grocery Store Wars Analysis shows grocery stores might increase a home’s value based on home-price appreciation and home equity, or also as an investor looking for the best home-flipping returns and home-seller ROI.
The study looked at current average home values, 5-year home price appreciation for YTD 2022 vs. YTD 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.
Key highlights:
Trader Joe’s wins out when it comes to average home value for nearby homes, with $987,923. Whole Foods follows up with $891,416, and then ALDI with $321,116.
Not only does Trader Joe’s lead the pack for home values, but it also takes the lead in home equity with homeowners earning an average of 50% ($520,842) equity, compared to Whole Foods at 45% ($433,311) and ALDI at 38% ($132,643).
ALDI won at 5-year home price appreciation with 58%, while Trader Joe’s saw 49% and Whole Foods saw 45%.
Properties near an ALDI are ripe for investors, with an average gross flipping ROI of 54%, compared to Whole Foods with 28% and Trader Joe’s with 25%.
ALDI again wins at average home seller ROI with 61%, while Trader Joe’s sits at 58%, and 51% for Whole Foods.
Major takeaway:
“Smart homebuyers might want to consider where they’ll do their grocery shopping when they’re shopping for a new home.” said Rick Sharga, executive vice president of market intelligence at 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.”
Get the full report on RISMedia.
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