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Collection: Faculty Working Papers  
Title Is Wal-Mart a Bad Neighbor? Repeat sales evidence on how property values react to a new Big-box store
Author Johnson, Daniel K. N.
Lybecker, Kristina M.
Type of Resource text
Digital Origin born digital
Date Created 2010-07-28
Abstract While there is anecdotal evidence that home values decline when a big-box store (such as Wal-Mart) decides to locate in the area, there is a paucity of evidence on that effect. This paper uses a repeat sales model to compare residential property values, and the speed of sale of the property, to compare the impact that an arrival has. Results conclude that there is a "news effect" surrounding the arrival, and that the total effect is small at most. For most specifications tested, the number of stores nearby, the arrival of new stores, and the distance to the nearest store all have insignificant impacts on both property resale value and the number of days that a property spends on the market prior to sale. In the worst-case scenario, the arrival of a Wal-Mart is associated with a decline equivalent to roughly one percent of the home's square footage and is not absorbed by those closest to the new retailer but by rather more distant neighbors.
Keywords externality
real estate
Rights Statement Copyright restrictions apply. Contact the author for permission to publish.
Note (admin) Acquired from Department of Economics and Business. Saved as PDF/A1.b using Adobe Acrobat Professional.
Language eng
Extent 25 p. : ill.
Local Identifier 2010-08
Handle http://hdl.handle.net/10176/coccc:3331
Attached Files
Name Description MIMEType Size Downloads
IsWalmart.pdf   master application/pdf 553.89KB 0

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Created: Tue, 15 Feb 2011, 15:58:12 MST by Christine Ashlock (admin) . Detailed History