People looking to buy a home often consider the conveniences in the neighborhoods as well. When it comes to choosing a home located near Target versus buying one near a Wal-Mart store, a study conducted by RealtyTrac suggests that it may literally pay people to buy homes located near a Target store.
In 2015, homes located in the vicinity of a Target retailer saw their homes appreciate in value as much as 27 percent. In contrast, homes located near a Wal-Mart store witnessed their homes only appreciate in value 16 percent.
Still, real estate insiders speculate that the correlation between home appreciation value and these stores’ location may be somewhat coincidental. Insiders note that Target as a corporation typically prefers to build in neighborhoods where homes are valued higher than other parts of the city.
Alternatively, Wal-Mart typically likes to build its big box stores in rural areas or on the outskirts of cities where homes on average are valued less than their urban counterparts. Likewise, the company prefers to buy land in rural or outskirt areas that is cheaper for the company to acquire.
As such, the building behavior of both companies indicate that their presence is only a small influence on the existing value of the homes around them. However, the longer the retailers stay in the neighborhood, the higher the values of the homes in these stores’ vicinity may rise. Arguably, homes located near Target stores appreciate at a higher rate than those located close to Wal-Mart stores.