Continuing the Whole Foods/Trader Joe's Debate...
While the rivalry between the two organic grocery store chains has been a reoccurring theme this summer, with individuals comparing food quality, food prices, customer service, etc., we decided to account how these two grocery magnates affect the real estate estate industry. The results weren't what I expected.
Although Trader Joe's is generally much less expensive than Whole Foods, with the latter generally charging very high prices for their all-natural groceries (see the infamous asparagus-water outrage), it was Trader Joe's that was found to increase the value of one's home more than Whole Foods. Housing data site RealtyTrac found that if one's home is located close to a Trader Joe's, it will increase one's home on average by 40%. Similarly, if one's home is close to a Whole Foods, the supermarket will appreciate the value of the home by 34% (6% less than Trader Joe's). Furthermore, properties near a Trader Joe's were found to have a higher average home value overall at $592,333, 5% more than the average value of homes near a Whole Foods at $561,840.
This being said, living close to these two food giants doesn't come without its fair share of penalties. Homeowners near a Trader Joe's were found to pay on average $8,538 in property taxes, with homeowners near a Whole Foods paying roughly $5,392 per year. The surprising reality about these two numbers is that the property taxes near a Trader Joe's are 59% higher than those of a Whole Foods neighborhood. So, if you're like me and think that just because Whole Food's prices are higher that they're home value and taxes will be more for homes in that area, think again. It's Trader Joe's that takes the cake this time.
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