Homebuyers in search of a new residence should investigate whether there is a Trader Joe’s grocery store nearby, according to a new analysis from ATTOM Data Solutions.
For reasons that are probably more entertaining for discriminating foodies than serious property purchasers, ATTOM determined that homeowners living near a Trader Joe’s store have seen an average five-year home price appreciation of 67 percent. In comparison, those living near a Whole Foods Supermarket saw a 52 percent appreciation, while those residing near the discount ALDI supermarket chain saw a 51 percent appreciation.
Furthermore, homeowners near a Trader Joe’s own an average 36 percent equity in their homes ($232,439), while homeowners near Whole Foods had an average of 31 percent equity ($187,925) and homeowners near ALDI had average 18 percent equity ($46,352).
However, real estate investors seeking to buy and flip homes should see if ALDI is in town. Properties near an ALDI recorded an average gross flipping return on investment (ROI) of 69 percent, compared to a 41 percent ROI for flipped properties near a Whole Foods and a 36 percent ROI for flipped homes near Trader Joe’s. Properties near an ALDI had an average gross rental yield of 10 percent, compared to properties near a Whole Foods with an average gross rental yield of six percent and Trader Joe’s at five percent. And, of course, properties near ALDI make it easier for fans of Clancy’s Potato Chips to walk over and pick up bags of this delightful munchie–but that’s another story.