Research has shown that homes situated near a Trader Joe’s or Whole Foods see significant increases in value. Can big-box retailers have a similar effect?
According to an analysis by housing data leader Realty Trac, homes near a Target store see higher home value and appreciation than those near Walmart—but homeowners near Target pay higher property taxes.
Of homeowners who sold last year, those near a Target saw an average 27 percent increase in price since they purchased their home (an average price gain of $65,569); those near a Walmart saw an average 16 percent appreciation (an average price gain of $24,900). Homeowners who own near a Target pay an average of $7,001 in property taxes, which is 123 percent more than the $3,146 average paid by homeowners who own near a Walmart.
Homes near a Target also have a higher value: $307,286, on average. This is 72 percent higher than the $178,249 average value for homes near a Walmart.
Comparatively, the average price appreciation nationwide is 22 percent (an average price gain of $40,626), the average property tax nationwide is $4,283, and the average home value nationwide is $215,921.
