Home Builders New Jersey deals with hundreds of clients. Our professionals have noticed one thing. People become very conscious when it comes to selecting the location for their homes. They make sure the area has every facility around it, especially grocery stores. Now, why is that so? Most people will say because of the ease of buying necessary items. But what else? Well, today’s article by Home Builders New Jersey will tell you this. We will explain whether grocery stores influence the price of our homes or not.
Why Are We Talking About Grocery Stores?
Our lives are incomplete without food. We need to shop for food items once a week or more. It shows the importance of groceries for our living. If we think about having no grocery store nearby our home, what will happen?
- We will struggle to prepare our food daily.
- We will need to travel to another neighborhood to do groceries. It will waste our time and money.
- We cannot satisfy our sudden cravings and many more.
A famous proverb says that you can select your house but not your neighbors. But you can choose your neighborhood all by yourself. In this situation, why not choose a place which has everything? Therefore, selecting an area that must have a grocery store is necessary. Grocery stores undoubtedly influence the value of our houses every time. Whether we sell, buy or rent our property.
Now you must have an idea about how grocery stores do influence home prices. Let us tell you how!
Higher Prices = Short Distance
The distance between a home and a grocery store matters a lot. It influences the prices very much. Yale University surveyed estimating the effect. They consider the distance of 1 mile, 3 miles, and five miles. The objective was to analyze the price difference. The results proved that distance has a significant impact on home prices. Those homes which were 1 mile away from the grocery store were priced higher. The prices of homes decreased as their distance increased with the grocery store. Those having a distance of 3 or 5 miles have lower house prices.
Higher Price = Additional Grocery Stores
Home Builders New Jersey sells thousands of homes at high prices. The areas which have more shops, especially grocery stores, have high values. According to research, a person goes to a grocery store 1.9 times. It is only for a week. You can estimate the time a person goes for groceries in a month. The neighborhoods which have more than one grocery store are more attractive. People are attracted to them by seeing the shopping facilities. It saves their traveling expense and time. That is why areas with one grocery store have a high value. In contrast to areas with no grocery stores. But the communities with three or four grocery stores have higher prices.
Higher ROI = More Grocery Shops
The homes that have grocery stores nearby have a high return on investments. Yes, you heard it right! It has been proved through research. ATTOM data solutions conducted it. The areas for the survey were Whole Foods, Trader Joe’s, and Aldi. It included 1859 zip codes. With this, at least one out of three stores of grocery. The ROI was calculated for the homes in these areas for five years. The results were as follows:
- The highest ROI was 51%. It was for the seller who has houses nearby or in Trader Joe’s.
- The ROI was 41% of the residents of the Whole Food area.
- For the sellers of Aldi, ROI was the lowest at 34%.
On average, the ROI was 25% in the areas which have more grocery stores. It proves that the neighborhoods with one or no grocery stores have lower ROI. In contrast, areas with more grocery stores have tremendous ROI.
Buying or renting a house is a huge decision. People invest their life savings for this purpose. Therefore, it is essential to make the right decision. Location is one of the most crucial factors while choosing houses. An area with more grocery stores and all facilities has high value. You can now have a clear picture about the importance of grocery stores. With this analysis of Home Builder, New Jersey made the right decision. Maximize your investment and secure your future.