When Walmart Comes to Town: Always Low Housing Prices? Always?
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.
We thank Emek Basker, Nick Kuminoff, Lars Lefgren, and Arden Pope as well as colleagues at the University of Chicago and Brigham Young University for helpful discussions about this paper. We also thank Chris Bruegge and Brendan Forster for excellent research assistance on this project. The standard disclaimer applies. There were no sources of funding or material and relevant financial relationships for this project. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.
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. citation courtesy of