Should you buy property near a Wal-Mart or a Target store? Well, it actually seems pretty straight forward when you think about it, Target is a store aimed at a higher income bracket who still like a good deal. Wal-Mart on the other hand is essentially a low priced store where maybe the quality of products they sell just isn't as high.
Plus, Target stores now have Starbucks coffee shops in their stores, which actually makes the home nearby more valuable. Yes, people love coffee and love Starbucks.
Realty Trac did a report on home prices near Target stores versus Wal-Mart and found that home prices near Target stores are much higher:
What we found is 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.
Among homeowners who sold in 2015, those near a Target saw an average 27 percent increase in home price since they purchased their home, which equates to an average price gain of $65,569, compared to 16 percent appreciation and an average price gain of $24,900 for homeowners near a Walmart. The average appreciation for all zip codes nationwide is 22 percent, while the average price gain is $40,626.
Homes near a Target also have a higher value on average: $307,286, 72 percent more than the $178,249 average value for homes near a Walmart. The average value of homes was $215,921 across all zip codes nationwide.
Homeowners near a Target paid an average of $7,001 in property taxes, 123 percent more than the $3,146 average for homeowners near a Walmart. The average property tax across all zip codes nationwide was $4,283.
Again, what's also not mentioned in this report is that a number of Target stores now have a Starbucks inside the store itself. So maybe it's all about buying real estate near a Starbucks when it gets down to it.
Realty Trac has a nice infographic of the comparison. Also remember that Target stores are probably a lot newer than Wal-Mart stores, so they're probably being built in up and coming areas. Whereas Wal-Mart's are older and perhaps located in older sections of town.
So yes, if you can, buy a property that's closer to a Target store rather than one near a Wal-mart. In the long run, your property value will increase as other stores move near the Target store as well. Remember, they've got Starbucks in many of their stores now too.