Retail Midwest

Grocery stores not just boosting nearby retailers. They help homeowners, too

Grocery stores not just boosting retailers,ph01

The retail sector faces well-documented struggles today. But despite these challenges, several grocery store chains are thriving. Some are doing so well, that they not only provide a boost to the retailers around them, they are helping to increase the value of neighboring homes.

ATTOM Data Solutions recently studied the financial impact of grocery stores on nearby homes. To do this, ATTOM researched 1,859 U.S. zip codes that had at least one Whole Foods, Trader Joe’s and ALDI store.

ATTOM found that homes located near a Trader Joe’s saw an average home seller return on investment of 51 percent. Homes near a Whole Foods saw an average home seller return on investment of 41 percent. That figure stood at 34 percent for homes near an ALDI.

Homes near a Trader Joe’s have also built up equity faster. ATTOM found that homeowners near a Trader Joe’s had an average of 37 percent equity in their homes while those near a Whole Foods had an average of 31 percent equity. Those near an ALDI had an average of 20 percent equity.

Buying a home near one of these grocery stores might be an even better move for investors. Properties near an ALDI, for instance, had an average gross flipping return on investment of 62 percent. Properties near a Whole Foods had an average gross flipping return on investment of 35 percent, while those near a Trader Joe’s had a return on investment of 31 percent.

Properties near an ALDI have seen an average five-year price appreciation of 42 percent, compared to 33 percent for homes near a Trader Joe’s and 31 percent for those near a Whole Foods.