How homes near Trader Joe’s are getting a massive boost in value.
Did you know that living near a Trader Joe’s store adds value to your home? They call this the Trader Joe’s effect, and I can concur.
I just got off the phone with a homebuyer who’s moving here from out of state, and one of their main requirements was to be near a Trader Joe’s. I share this affection because a Trader Joe’s just opened one mile from my house recently, and to say that I was super giddy about it for months and weeks leading up to its grand opening was an understatement. Being relatively close to flagship stores can add value to your home. In fact, early in the 2000s, people were asking to be near or at least at a walkable distance from Starbucks or coffee shops; now, it’s Trader Joe’s.
An article came out talking about the Trader Joe’s effect. According to an analysis done by ATTOM Data Solutions, homes with a Trader Joe’s location in their zip code have a high average home value and return on investment. To calculate the effect on the home value, analysts looked at 1,859 zip codes nationwide with at least one ALDI, Whole Foods, or Trader Joe’s store. Then they analyzed current home values and average equity homeowners had in their homes, median sales prices and profits for 2019, year to date, as well as a one and five-year home price appreciation.
According to the study, out of the three stores to have in a home’s vicinity, Trader Joe’s was the most valuable and had the highest average return on investment compared to the sales price at 51%. Homes near Whole Foods averaged around $521,000 a year and proved a 41% ROI, which isn’t bad but not nearly as high as Trader Joe’s.
If you have a home near or close to a Trader Joe’s, you definitely hit the jackpot! If you have more questions about this topic or have any real estate-related questions, call or email me. I’m always happy to help!