As studies go, ATTOM Data Solutions Grocery
Store Wars
analysis is kind of silly. But at this point in this year, kind of silly
is sort of welcome. Keep chickens and eggs in mind and make of this what you
will.

The company looked at how the proximity
of different grocery stores might affect a home’s value
, both for homeowners
and investors. They looked specifically at Whole Foods, Trader Joe’s (TJ’s),
and ALDI.

The analysis considered current average home values, 5-year home price
appreciation from the same dates in 2015 to 2020, current average home equity,
home seller profits, and home flipping rates in U.S. zip codes with a least one
Whole Foods store, one TJ’s store and (although one wonders if they mean “or”
rather than “and”) one ALDI store.

ALDI led the way with overall 5-year appreciation of 41 percent against 35
percent for Trader Joe’s and 33 percent for Whole Foods. However, the value of
an ALDI store slips when other measures are used. First, average home values reflect
the siting priorities of the stores. The average home value near TJ’s is
$644,558 compared to $532,224 for Whole Foods and $250,850 for an ALDI.

TJ’s also takes the lead in homeowner equity at 37 percent ($255,066). Whole
Foods is located near homes with average equity of  $191,380 or 33 percent while ALDI’s neighbors have
equity of $71,204 or 26 percent. The average equity for all zip codes with
these grocery stores nationwide is 29 percent.

Home sellers see an average return on investment (ROI) of 51 percent if
located near a Trader Joe’s, 43 percent for Whole Foods, and 41 percent for
ALDIs. The average home seller ROI for all zip codes with these grocery stores
nationwide is 43 percent.

However, if one believes there is a cause-and-effect behind these numbers,
it is investors who should check out ALDI locations. Homes flipped in those
neighborhoods have an average return on investment (ROI) of 58 percent compared
to Whole Foods at 36 percent and TJ’s at 30.

By Jann Swanson , dated 2020-12-28 11:54:09

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Courtesy of Mortgage News Daily

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