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

22 Pages Posted: 22 Oct 2009

See all articles by Daniel K. N. Johnson

Daniel K. N. Johnson

Colorado College - Department of Economics and Business

Kristina M.L. Acri née Lybecker

Colorado College - Department of Economics & Business

Nicole Gurley

Colorado College - Department of Economics and Business

Alex Stiller-Shulman

Colorado College - Department of Economics and Business

Stephen Fischer

Colorado College, Department of Economics & Business

Date Written: October 21, 2009

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 Classification: N9, R1

Suggested Citation

Johnson, Daniel Kent Neil and Acri née Lybecker, Kristina M.L. and Gurley, Nicole and Stiller-Shulman, Alex and Fischer, Stephen, The NWIMBY Effect (No Walmart in My Backyard): Big Box Stores and Residential Property Values (October 21, 2009). Available at SSRN: https://ssrn.com/abstract=1492195 or http://dx.doi.org/10.2139/ssrn.1492195

Daniel Kent Neil Johnson (Contact Author)

Colorado College - Department of Economics and Business ( email )

14 E Cache La Poudre Street
Colorado Springs, CO 80903
United States
719-389-6654 (Phone)
719-389-6927 (Fax)

HOME PAGE: http://faculty1.coloradocollege.edu/~djohnson

Kristina M.L. Acri née Lybecker

Colorado College - Department of Economics & Business ( email )

14 E Cache La Poudre Street
Colorado Springs, CO 80903
United States
719-389-6445 (Phone)
719-389-6927 (Fax)

Nicole Gurley

Colorado College - Department of Economics and Business ( email )

14 E Cache La Poudre Street
Colorado Springs, CO 80903
United States

Alex Stiller-Shulman

Colorado College - Department of Economics and Business ( email )

14 E Cache La Poudre Street
Colorado Springs, CO 80903
United States

Stephen Fischer

Colorado College, Department of Economics & Business ( email )

14 E Cache La Poudre Street

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