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When Walmart comes to town: Always low housing prices? Always?

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  • Pope, Devin G.
  • Pope, Jaren C.

Abstract

Walmart often faces strong local opposition when trying to build a new store. One common complaint is that Walmart lowers nearby housing prices. In this study we use over one million housing transactions located near 159 Walmarts that opened between 2000 and 2006 to test if the opening of a Walmart lowers housing prices. Using a difference-in-differences specification, our estimates suggest that a new Walmart store actually increases housing prices by between 2% and 3% for houses located within 0.5 miles of the store and by 1–2% for houses located between 0.5 and 1 mile.

Suggested Citation

  • Pope, Devin G. & Pope, Jaren C., 2015. "When Walmart comes to town: Always low housing prices? Always?," Journal of Urban Economics, Elsevier, vol. 87(C), pages 1-13.
  • Handle: RePEc:eee:juecon:v:87:y:2015:i:c:p:1-13
    DOI: 10.1016/j.jue.2014.10.004
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    Cited by:

    1. Walls, Margaret & Kousky, Carolyn & Chu, Ziyan, 2013. "Is What You See What You Get? The Value of Natural Landscape Views," Discussion Papers dp-13-25, Resources For the Future.
    2. Florencia Borrescio, 2014. "Can Walmart make us healthier? The effect of Market Forces on Health Care Utilization," Working Papers wp_042, Adolfo Ibáñez University, School of Government.
    3. Agarwal, Sumit & Mikhed, Vyacheslav & Scholnick, Barry, 2016. "Does inequality cause financial distress? Evidence from lottery winners and neighboring bankruptcies," Working Papers 16-4, Federal Reserve Bank of Philadelphia, revised 21 Oct 2016.
    4. Tingyu Zhou & John M. Clapp, 2016. "Predicting Risks of Anchor Store Openings and Closings," The Journal of Real Estate Finance and Economics, Springer, vol. 52(4), pages 449-479, May.
    5. Barry Scholnick & Hyungsuk Byun, 2016. "Do Slot Machines Cause Bankruptcy? A Regulatory Natural Experiment with Exogenous Changes to Slot Locations," ERSA conference papers ersa16p607, European Regional Science Association.
    6. Matthew E. Kahn & Nils Kok, 2014. "Big-Box Retailers and Urban Carbon Emissions: The Case of Wal-Mart," NBER Working Papers 19912, National Bureau of Economic Research, Inc.
    7. Margaret Walls & Carolyn Kousky & Ziyan Chu, 2015. "Is What You See What You Get? The Value of Natural Landscape Views," Land Economics, University of Wisconsin Press, vol. 91(1), pages 1-19.
    8. Somekh, Babak, "undated". "Shopping In A Segregated City," Working Papers WP2014/5, University of Haifa, Department of Economics.
    9. Byun, Hyungsuk & Scholnick, Barry & Byun, Hyungsuk, 2017. "Spatial Commitment Devices and Addictive Goods: Evidence from the Removal of Slot Machines from Bars," Working Papers 17-34, Federal Reserve Bank of Philadelphia.
    10. Borrescio-Higa, Florencia, 2015. "Can Walmart make us healthier? Prescription drug prices and health care utilization," Journal of Health Economics, Elsevier, vol. 44(C), pages 37-53.
    11. Donald Vandegrift, 2016. "The effect of Walmart and Target on property tax rates," Letters in Spatial and Resource Sciences, Springer, vol. 9(3), pages 309-327, October.

    More about this item

    Keywords

    Walmart; Housing prices;

    JEL classification:

    • R20 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - General

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