HOUSTON – (By Dale King, Realty News Report) – A long-held nutrition-based adage suggests: “You are what you eat.”
An analysis by ATTOM Data Solutions has added an up-to-date, financial corollary to that maxim: “The value of your home is likely a factor of where you buy your groceries.”
Researchers for the firm drew that conclusion after examining a thought-provoking proposition. Does living near a Trader Joe’s, a Whole Foods or an ALDI affect a home’s value?
Turns out the answer is yes, according to their investigation.
After examining 1,859 ZIP Codes nationally, each containing at least one Whole Foods store, one Trader Joe’s grocery and one ALDI market, the data firm came up with a variety of interesting facts and figures for folks looking to buy a home, acquire a domicile or to flip a residence to ponder.
ATTOM’s analysis says Trader Joe’s strikes gold for homebuyers while ALDI rings the bell among investors. The average value of homes near a Trader Joe’s is $608,305 compared with $521,142 for residences near a Whole Foods and $222,809 for those that share a ZIP Code with ALDI.
In addition, residences proximate to a Trader Joe’s realized an average home seller return-on-investment (ROI) of 51 percent, compared to homes close to a Whole Foods with an average home seller ROI of 41 percent and ALDI at 34 percent. The average home seller ROI for all ZIP Codes with these grocery stores nationwide is 37 percent.
Also, homeowners who live near a Trader Joe’s have added in-home value, owning an average 37 percent equity ($247,445) while dwellings near Whole Foods had an average of 31 percent equity ($187,035) and homes adjoining ALDI had average 20 percent equity ($53,650). The average equity for all zip codes with these grocery stores nationwide is 25 percent.
On the other hand, homes near an ALDI are an investor’s cornucopia with an average gross flipping ROI of 62 percent, compared to properties near a Whole Foods which had an average gross flip return of 35 percent and Trader Joe’s at 31 percent. The average gross flipping ROI for all ZIP Codes with these grocery stores nationwide is 52 percent.
Properties on a parcel near an ALDI have seen an average five-year home price appreciation of 42 percent, compared to 33 percent appreciation for homes near a Trader Joe’s and 31 percent value increase for homes close to a Whole Foods. The average appreciation for all Zip zones with these grocery stores nationwide is 38 percent.
For this analysis, ATTOM looked at current average home values, five-year home price appreciation from year-to-date 2019 vs. year-to-date 2014, current average home equity, home seller profits and home flipping rates.
Grocery store locations were provided by the U.S. Department of Agriculture.
Aug. 8, 2019 Realty News Report Copyright 2019
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