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The Convenience Factor: Grocery Store Proximity and Home Values

According to a new annual report from ATTOM Data called the Grocery Store Wars analysis, homeowners and investors looking to maximize their return or home appreciation rates should look for certain grocery stores to have nearby which have been proven to raise home values. 

For the report, ATTOM analyzed current home values, five-year home price appreciation between 2017 and 2022, current average home equity, home seller profits, and flipping rates in zip codes with at least one of these grocery stores: ALDI, Trader Joe’s, and Whole Foods. 

Overall, living near a Trader Joe’s appears to be a win for homeowners as average home values in that zip code top $987,923, while homes near a whole foods were valued at $891,416, and homes near a ALDI were valued at $321,116. 

Between 2017 and 2022, homes near an ALDI appreciated at a rate of 58%, while Trader Joe’s appreciated at 49% and 45% for Whole Foods. 

For investors looking to flip, one should look no further than Aldi, as flippers saw an average gross return on investment of 54%. This paled in comparison to Trader Joe’s (25%) and Whole Foods (28%). 

Sellers return on investment posted better results: homes near an ALDI netted sellers a 61% profit, while homes near Trader Joe’s and Whole Foods netted 58% and 51%, respectively. 

"Smart homebuyers might want to consider where they'll do their grocery shopping when they're shopping for a new home." said Rick Sharga, EVP 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." 

Click here to view the research in its entirety. 

About Author: Kyle G. Horst

Kyle G. Horst is a reporter for DS News and MReport. A graduate of the University of Texas at Tyler, he has worked for a number of daily, weekly, and monthly publications in South Dakota and Texas. With more than 10 years of experience in community journalism, he has won a number of state, national, and international awards for his writing and photography including best newspaper design by the Associated Press Managing Editors Group and the international iPhone photographer of the year by the iPhone Photography Awards. He most recently worked as editor of Community Impact Newspaper covering a number of Dallas-Ft. Worth communities on a hyperlocal level. Contact Kyle G. at [email protected].

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