![\"\"](\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2021\/01\/grocery-store-wars-infographic.jpg\" "\\"\\"")
<\/p>\n
Perks of Living Near Trader Joe’s<\/h2>\n
Over the last five years, home values have appreciated nationwide. However, zip codes with a Whole Foods saw an average price appreciation of 33%, while Trader Joe\u2019s came in at 35% and ALDI at 41%.<\/p>\n
Related: <\/em><\/strong>The 5 Best Places to Raise a Family in the U.S.<\/a><\/em><\/p>\n Trader Joe\u2019s led the pack in terms of home value. Properties near a Trader Joe\u2019s had an average value of $644,558, while homes near Whole Foods were valued at $532,224 on average. Neighborhoods near ALDI were valued far lower, coming in at an average of $250,850.<\/p>\n Furthermore, average home equity tended to fluctuate depending on the neighborhood\u2019s grocery store. Homes near a Trader Joe\u2019s had the most equity, posting 37% on average. Whole Foods came in second with 33% average equity. To bottom out the list is ALDI, with 26% average equity, below the national average of 29% for zip codes with these grocery stores present.<\/p>\n Because of lower home values, properties near an ALDI seem to be perfect for investors. Data suggest that the gross flipping ROI for homes near an ALDI average around 58%. Compare this to homes near Whole Foods and Trader Joe\u2019s, where flipping ROI falls significantly to 36% and 30% respectively.<\/p>\n Related: <\/em><\/strong>14 Markets Where Home Flippers Are Doubling Their Money<\/a><\/em><\/p>\n Home seller ROI tells a slightly different story though. Investors who buy near ALDI’s are still gaining: The average home seller ROI is 41% for these properties. However, their returns are actually lower than those who invest near both Whole Foods and Trader Joe\u2019s. For those two stores, home seller ROI hits 51% for Trader Joe\u2019s and 43% for Whole Foods\u2014rates equal to or better than the 43% national average for zip codes with these stores.<\/p>\n The main reason for home pricing differences among these three chains is that they all target different segments of the population. Whole Foods targets millennials and environmentalists, who are willing the spend the extra money on organic and natural products that are eco-friendly and healthier. Trader Joe\u2019s is considered Whole Foods\u2019 primary rival<\/a>, but Trader Joe\u2019s is more focused on creating a unique and fun shopping experience in contrast to Whole Foods\u2019 upscale setting.<\/p>\n Regardless, the demographics that these two stores attract are typically wealthier individuals with college degrees, making it more likely that home values near these stores\u2014which are certainly strategically placed\u2014are higher. ALDI, on the other hand, is a no-frills market that blends low prices with quality products for middle-class shoppers<\/a>. This means that home values near an ALDI are going to be lower by the nature of the wealth living in that area.<\/p>\n The takeaway for investors is to always remember to look beyond typical data and conventional analysis when choosing housing markets. Instead, check out firsthand the cities and neighborhoods you’re considering. Take note of the grocery stores, the people, the cars, the shopping, and other amenities. Honing qualitative assessment skills is another major component of achieving success in the real estate industry.<\/p>\nBenefits of Investing Near ALDI<\/h2>\n
Why Grocery Stores Impact Property Values<\/h2>\n
The Bottom Line<\/h2>\n
![\"\"](\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2020\/09\/BPInsights-v2-blog-ad.jpg\" "\\"\\"")
<\/a><\/p>\n