Those hoping to watch their home’s value soar might want to live near this grocery store.

Homeowners who lived closest to an Aldi, a German chain of discount supermarkets, saw the greatest home appreciation, according to a recent report from real estate data firm ATTOM. Home values jumped 58% for homeowners near an Aldi compared with 49% for those not far from a Trader Joe’s and 45% for those close to a Whole Foods.

“Having a grocery store nearby, particularly a store with a brand that resonates with the homebuyer, is definitely a plus, and one of the conveniences that can differentiate one home or one neighborhood from another,” says Rick Sharga, executive vice president of market intelligence at ATTOM.

“There’s also probably a psychological factor involved. Buying a very expensive home located near discount retailers and grocery stores may be offsetting to prospective buyers, while budget-conscious buyers may worry about cost-of-living issues if they purchase a lower-priced home surrounded by luxe retailers.”

To come up with its findings, ATTOM examined average home values, five-year appreciation for year-to-date 2022 compared with the same period in 2017, average home equity, home seller profits, and home-flipping rates. Only ZIP codes with at least one of each grocery store were included in the analysis.

While homes near Aldi saw the largest increase in values, they also had the lowest average prices, at an average of $321,116. This means prices have more room to rise.

“Aldi locations will be in areas with more affordable housing than neighborhoods adjacent to Trader Joe’s and Whole Foods, which attract a somewhat more affluent clientele,” says Sharga.

Home flippers pocketed the biggest profits near Aldi stores as well. They earned about a 54% average return on investment, according to ATTOM. That’s compared with 28% for properties near a Whole Foods and 25% for those near a Trader Joe’s.

The most expensive real estate was located near a Trader Joe’s. Homes near the store had an average value of $987,923. Meanwhile, properties near a Whole Foods were the second priciest, with an average value of $819,416.

“Trader Joe’s and Whole Foods target affluent neighborhoods, where homeowners are more likely to be able to afford these chain’s higher-priced offerings,” says Sharga. “Having these high-end stores nearby gives the neighborhood a certain panache and implied quality of life, which in turn protects and enhances home values.”

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