Grocery stores remain one of the hottest retail catergories. And consumers definitely want to live near one. But which grocery store does the most to boost the value of a community? According to a recent study by ATTOM, Trader Joe’s tops the list.
ATTOM, the research arm of foreclosure site RealtyTrac, recently studied the impact that living near a Trader Joe’s, Whole Foods or ALDI has on the value of homes.
ATTOM found that homeowners living near a Trader Joe’s see their home prices jump an average of 67 percent from 2012 to 2017. Those living near a Whole Foods experienced an average increase of 52 percent during these same five years, while those living near an ALDI have seen the value of their homes rise an average of 51 percent.
The consensus here? Living near any of these three grocery stores helps build demand for a residential neighborhood, though other factors — strength of public schools, access to public transportation, crime rates — will also play major roles in how much or little a home’s value appreciates.
ATTOM also found that the average value of a home near a Trader Joe’s was $595,288. The average value for a home near a Whole Foods was $531,103, while this value was $211,855.
This lower value is why ALDI is the best grocery store for investors hoping to buy homes and flip them. ATTOM found that homes near an ALDI had an average gross flipping return-on-investment of 69 percent from 2012 to 2017. Homes near a Whole Foods had an average gross flipping return-on-investment of 41 percent, while those near a Trader Joe’s had a return of 36 percent for flippers.
The ATTOM study, of course, doesn’t look at the impact that all grocery stores have on home values. It doesn’t look at the most popular grocery stores in the country or the most common. Market Force International, for instance, in May studied which grocery stores are the most popular among consumers. The company found that Publix and Wegmans tied for first in its survey.
Trader Joe’s came in a close second place, while H-E-B brands ranked third. ALDI came in fourth, while Whole Foods ranked eighth.
The survey by ATTOM, though, does show why the owners of retail strip centers are always so eager to attract grocery stores. These stores draw in the shoppers — consumers have to eat, no matter how tough of a week they’ve had — and, hopefully, proivde a boost to other shops in the centers.
