Trader Joe’s edges out Whole Foods Market in terms of raising home property values, and both specialty grocers’ more than double deep-discount grocery chain Aldi on that score, according to property data specialist ATTOM Data Solutions.
The average value of homes near a Trader Joe’s store is $644,558, compared with $532,224 for Whole Foods and $250,850 Aldi, Irvine, Calif.-based ATTOM said Wednesday in releasing its annual 2020 Grocery Store Wars analysis.
On the plus side for home owners and buyers, homes situated in proximity to an Aldi store saw an average five-year home price appreciation of 41%, more than for those near a Trader Joe’s or a Whole Foods, which had respective appreciations of 35% and 33% during that time span.
Trader Joe’s, meanwhile, leads in terms of home equity, with homeowners earning an average of 37% equity ($255,066), well over the 33% ($191,380) for Whole Foods and 26% ($71,204) for Aldi. ATTOM noted that the average equity for all ZIP codes with these grocery stores nationwide is 29%.
Properties near an Aldi store offer more potential for home investors, ATTOM found. The average gross flipping return on investment for homes in an Aldi community was 58%, compared with 36% for properties near a Whole Foods and 30% for those near a Trader Joe’s at 30%.
Though properties near an Aldi location realize less of an average home seller ROI than the other two chains, investors still see a return of 41%, according to ATTOM. Whole Foods is only slightly ahead, with an average seller ROI of 43% for nearby homes, while Trader Joe’s stands at 51% on that measure for homes in the communities it serves. For all ZIP codes with these food retailers, the average home seller ROI is 43%.
For the analysis, ATTOM said it examined current average home values, five-year home price appreciation from year-to-date 2020 (Q1-Q3) versus year-to-date 2015, current average home equity, home seller profits, and home flipping rates in U.S. ZIP codes with a least one Whole Foods store, one Trader Joe’s store and one Aldi store. Grocery store sites are from the U.S. Department of Agriculture’s retail locator.
With more than 2,000 stores in 36 states, Aldi has more than four times as many U.S. locations as Trader Joe’s (514) and Whole Foods (487).