Wal-Mart openings may increase Chicago home values
A recent study shows that home value increases by 2-3 percent for homes within a half mile of a Wal-Mart location, with a 1-2 percent price increase for homes between a half-mile and one mile of a Wal-Mart.
The study, undertaken by researchers from the University of Chicago and Brigham Young University, says, “For the average priced home in these areas this translates into an approximate $7,000 increase in housing prices for homes within a half mile of a newly opened Wal-Mart and a $4,000 increase for homes between a half and one mile.”
After taking about 10 years to complete, the study was recently released by the National Bureau of Economic Research. It used data from more than 1 million housing sales taking place across 20 different states and located near 159 Wal-Mart locations that opened between 2000 and 2006.
As reported by Governing, Wal-Mart opened its first store in Chicago approximately six years ago. Today, Wal-Mart has six Chicago locations, and among the most notable are the location near the famous Wrigley Field, and the Wal-Mart Neighborhood Market location, selling mostly groceries in the heart of the West Loop. Wal-Mart hopes to eventually open dozens of stores throughout Chicago.
As reflected by the results of the new study, homes for sale in Chicago that are located near a Wal-Mart store may sell at an increased price.