Why Trader Joe’s May Be a Whole Lot Better for Your Home's Value Than Whole Foods
Pop quiz: Living near which of these grocery meccas is better for your property value? Whole Foods, with its vast, glistening rainbow of organic produce and prettily prepared foods with price points to match, or Trader Joe’s, with its deliciously affordable array of fresh fruits and vegetables, gourmet specialties and staples, not to mention its inexpensive signature wine?
Homes near Trader Joe’s tend to appreciate considerably more, on average, than those near Whole Foods, according to an analysis conducted by real estate data site RealtyTrac. People who own homes near Trader Joe’s have seen their home values increase an average of 40 percent since they purchased them. Those with homes that share a ZIP code with Whole Foods, meanwhile, have enjoyed only a 34 percent appreciation, which is the average appreciation for homes in all U.S. ZIP codes.
Homes near TJ’s also have a 5 percent higher value, on average, than those near a Whole Foods: Those near Trader Joe’s have an average value of $592,339 vs. $561,840 for those near Whole Foods, both of which are considerably higher than the average U.S. home value, $262,068.
On the other hand, those higher property values come at a price: Homeowners who share a ZIP code with a Trader Joe’s pay about $8,536 in property tax annually, on average, while those who share one with a Whole Foods pay $5,382 — 59 percent less, yet still dramatically more than the $3,239 in annual property taxes the average U.S. homeowner pays.