ILLINOIS (IRN) — Homebuyers who want to get the most from their real estate investment should buy near specific grocery stores, according to a new study on home resale values.
A study by Attom Data Solutions took current average home values, price growth from 2019 compared to 2014, current home equity, seller profits, and flipping rates in more than 1,800 ZIP codes nationwide with a Whole Foods store, Trader Joe’s store or Aldi grocery store.
They found that a home near a Trader Joe’s got a home seller an average return of more than 50 percent of their investment, where homes near Whole Foods and Aldi brought an average of 41 and 34 percent, respectively.
Attom conducted the report to allow homebuyers to take advantage of the research that the grocery store site selectors have already done because those company’s do extensive research before deciding where to build.
“Homebuyers and investors would be well-served to follow some of those trends. It’s the same logic with Starbucks,” said Todd Teta, chief product and technology officer with Attom Data Solutions.
Whole Foods came in second of the three grocery store chains at 41 percent. That was surprising, Teta said.
“We assumed Whole Foods might be much more of a standout than it was,” Teta said.
In Illinois, the highest rate of return was in the 60647 ZIP code in the Bucktown neighborhood in Chicago, where people nearby the ALDI’s there got an average of 26 percent return on their investment. The lowest return by one of the three grocery stores in Illinois was in the 62206 ZIP code in St.Clair County. Home sellers near the ALDI’s there saw a 36 percent loss in their average home value from 2014 to 2019.
House flippers and real estate investors should buy near an Aldi grocery store because they averaged more than 60 percent profit, higher than the others, according to the study.