We can’t deny that there are so many reasons to love Trader Joe’s, the friendly environment, fantastic flower selection, unique private label products.
According to new research, one more reason added now. A 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 is giving a major boost to their homeowners 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 who are living near a Trader Joe’s boosted that ROI percentage to a whopping 51 percent.point 265 |
Living near a Whole Foods saw a 41 percent return while living near an Aldi had a 41 percent return.point 81 | And, those who have their own home near a Trader Joe’s own an average 37 percent equity in their homes, compared to the national average of 25 percent.point 211 |
Whole Foods saw 31 percent equity, while Aldi saw only 20 percent.point 55 | point 55 | 1
Properties near an Aldi location is shown to have nearly double the average gross flipping percentage rate of those near a Whole Foods or Trader Joe’s.
Though the data insinuates that it’s wise to buy near a Trader Joe’s, Blomquist pointed out that there is a value in living (or renting) near all three grocery stores.
“While the presence of one of these three grocery stores might be an important quality-of-life factor for a given home buyer, I think the bigger takeaway is that these grocery stores are a good barometer of the investment potential of a property you are buying, whether to live in or to flip or rent,” Daren Blomquist, senior vice president of Attom Data Solutions, said in a statement to HuffPost.
“If you are looking to live in a home and use it to build home equity wealth over the long term, you are most likely going to be best off buying near a Trader Joe’s. If you are looking to flip homes for a profit or buy rentals that provide good monthly cash flow, you’re the best to buy will be in a neighborhood with an Aldi.”