Surprising link between home values and presence of Target stores in neighborhoods
Walmart and Target are two of the most popular big-box stores, but they may have different effects on the housing prices around them, according to a new report.
As RealtyTrac states in a news release, it has found that "homeowners near a Target have experienced better home value appreciation since their purchase, but also pay more and have higher property taxes on average."
Properties sold in 2015 appreciated by 27 percent on average from the purchase amount when located near a Target compared to just 16 percent for those near a Walmart; the national average is 22 percent.
The value of homes near a Target is higher as well, with an average of $307,286 which is 72 percent higher than Walmart-adjacent homes at $178,249; the national average falls in between at $215,921.
A CBS News report suggests that the retailers could be playing a role in the values of surrounding homes, or they simply choose to be in areas that fit their target demographics.