Inflation continues, Home Values Drop, However, if you Bought Near the Right Grocer, You’re in Luck

 

Food matters even when it come to home value.  Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions® shares with our regular readers year after year the research from California-based Attom Data Solutions, a provider of real estate and property data.

So, here we go, according to a new analysis from Attom, Trader Joe's leads the pack for homebuyers, as an average home value near Trader Joe's is $987,923, compared to $891,416 near Whole Foods.

Yes, it is all about, Location, location, location. This real estate maxim now seems to apply to homes located near grocery stores. In Attom’s, 2022 Grocery Store Wars analysis reveals “how living near a Trader Joe's, a Whole Foods or an Aldi might boost a home's value—as a homebuyer based on home price appreciation and home equity, or as an investor looking for the best home flipping returns and home seller ROI.”

Rick Sharga, EVP of market intelligence at Attom, stated, "Smart homebuyers might want to consider where they'll do their grocery shopping when they're shopping for a new home," ... "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."

I just love reading this stuff and hope you do as well, so, while homes near a Trader Joe's realized an average five-year home price appreciation of 49%, homes near a Whole Foods saw an average appreciation of 45% and Aldi had an advantage at 58%.

Yes, there is more, remember that Aldi and Trader Joe’s have the same parent company, Ok, according to the latest findings for homeowners, it is Trader Joe's which leads the pack, as an average home value near Trader Joe's is $987,923, compared to $891,416 near Whole Foods. The average value of homes near discount grocer Aldi is $321,116, Attom reported.

Now from an investor perspective, properties near an Aldi is the solid choice, with an average gross flipping ROI of 54%, compared to properties near a Whole Foods, which had an average gross flipping ROI of 28 % and Trader Joe's at 25%.

Here is some background, for the analysis, Attom looked at current average home values, five-year home price appreciation for year-to-date 2022 vs. year-to-date 2017, current average home equity, home seller profits and home flipping rates in U.S. zip codes with at least one Whole Foods store, one Trader Joe's store and one Aldi store.

Are you ready for some fresh ideations? Do your food marketing ideas look more like yesterday than tomorrow? Interested in learning how our Grocerant Guru® can edify your retail food brand while creating a platform for consumer convenient meal participation, differentiation and individualization?  Email us at: Steve@FoodserviceSolutions.us or visit: us on our social media sites by clicking one of the following links: Facebook,  LinkedIn, or Twitter