For all the stink that’s often raised by the proposal of a new WalMart to a neighborhood, the opening of a new WalMart actually RAISES the prices of homes nearby. So why is that? According to a new study recently published in the National Bureau of Economic Research, shows that houses within a half mile radius to a new Walmart increases 2-3% after the retail chain opens.
This being said, homes in Encinitas are seeing a brighter future ahead with the new Walmart expected to open this year. Researchers at the University of Chicago and Brigham Young University, examined the sale prices in the 2 1/2 year window before a new Walmart opened and then compared them with the sale prices in the 2 1/2 year window afterward. They found that the price increases did not seem to come from either a rush of new construction near the Walmart, nor did they come from building larger homes. It was mostly just access to shopping.
My question would be….. what does the increased traffic do for the quality of life in the surrounding neighborhoods? Yeah, I’m not looking forward to our new WalMart in Encinitas because of the location, small parking lot… and increase in traffic.
