When Walmart Comes to Town: Always Low Housing Prices? Always?

37 Pages Posted: 25 May 2012

See all articles by Devin G. Pope

Devin G. Pope

University of Chicago - Booth School of Business

Jaren Pope

Brigham Young University

Date Written: May 2012

Abstract

Walmart often faces strong local opposition when trying to build a new store. Opponents often claim 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 does indeed lower 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 percent for houses located within 0.5 miles of the store and by 1 to 2 percent for houses located between 0.5 and 1 mile.

Suggested Citation

Pope, Devin G. and Pope, Jaren, When Walmart Comes to Town: Always Low Housing Prices? Always? (May 2012). NBER Working Paper No. w18111. Available at SSRN: https://ssrn.com/abstract=2066407

Devin G. Pope (Contact Author)

University of Chicago - Booth School of Business ( email )

5807 S. Woodlawn Avenue
Chicago, IL 60637
United States

Jaren Pope

Brigham Young University ( email )

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