The NWIMBY Effect (No Walmart in My Backyard):Big Box Stores and Residential Property Values

Abstract:     
Recent Wal-Mart openings have been accompanied by public demonstrations against the company’s presence in the community, asserting (among other things) that their presence is deleterious to residential property values. This study empirically evaluates that claim, analyzing the spatial correlation between Wal-Mart locations and residential property values, while comparing Wal-Mart with other big-box retailers for a frame of reference and controlling for other important aspects of a home’s market value. We recognize that market value may represent a trade-off between price and patience, so perform a similar analysis using a property’s days on the market to evaluate any big-box effect. Finally, we interpret the resulting effects in two ways, from both the resident’s and retailer’s point of view, casting new light on the NWIMBY effect.

Keywords: Walmart, housing, property value, hedonic, days on market, home value, site selection, hedonic estimation, real estate, retail store, Kmart, Target, Best Buy, appraisal, spatial model

JEL Classifications: N9, R1

Working Paper Series