Posted on Mar 12, 2016 by Chrystal Caruthers
What’s the difference between Walmart and Target? Home value. According to a recently released study, properties near Target saw an average 27% increase in home value compared to houses near Walmart, which only appreciated 16%.
You can chalk that up to many factors — Target attracts a higher income shopper so it builds near higher income homes; Target is known for designer capsule collections that attract higher net worth shoppers, and in a Target store, a shopper can fill her cart with everything from Charmin toilet paper to Nate Berkus home furnishings. At Walmart, a shopper gets discounts.
RealtyTrac, a housing analytics company, tracked the average median home sales price to the average median closed sales price in 2015. It found that those homeowners who live near a Target store realized an average price gain of $65,569 vs $24,900 for those who live near Walmart.
Nationally, the average appreciation was $40,626 in 2015, according to RealtyTrac. That says, homeowners near Walmart tend to have a lower than average home appreciation rate.
What’s more, homeowners near Target start with a higher home value — $307,286 compared to those near Walmart, $178,249, according to the report.
Naturally, those homeowners near Target also pay more in property taxes — $7,001 vs $3,143 for homes near Walmart. If you can afford to buy near a Target store, the higher price tag may be worth it when it’s time to sell.