Which retail store do you live closer to — Target or Walmart? The answer could affect the worth of your home.
Fortune shares that a new report from online real estate company RealtyTrac analyzed the value (including appreciation and property taxes) of homes located in U.S. zip codes that also contain a Target or a Walmart as a means of identifying which of the chains has the superior financial impact on homeowners residing in proximity to either of them.
Turns out that Target is the winner in that regard, according to the study, which concluded that price of homes near a Target increased by an average of 27 percent — or $65,569 — since the current owner’s time of purchase. For homes closer to a Walmart, RealtyTrac found that their comparable rate of value increase was only 16 percent, or an average of $24,900.
Fortune notes that Walmart was quick to offer a response to the study’s findings, with a company spokesperson commenting: “Not only are we serving customers with our stores, we’re positively impacting the communities our stores are located in, whether it’s increased property value or increased sales tax revenue … In addition to this RealtyTrac study, a 2012 study published by the National Bureau of Economic Research showed that homes located within a half mile of a Walmart showed an increase in property value compared to homes that were not.”
The outlet adds that, according to the RealtyTrac report, living closer to a Target than a Walmart — while it adds value to a home — also comes with a larger property tax bill. Using 2014 data, the study shows that homeowners within that category pay, on average, $7,001 a year in property taxes, which is 123 percent more than the $3,146 annual average paid by homeowners who live closer to a Walmart.
Furthermore, Fortune‘s report on the study notes that homes located closer to a Target store cost their owners more on average than did those closer to a Walmart store, by a difference of $307,286 to $178,249, or 72 percent more.
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