Dive Brief:

• When a Walmart opens in a neighborhood, the value of homes within a half mile of the new store typically spike by 2% to 3% within 2.5 years, according to a study published in the Journal of Urban Economics.

• Houses located between half a mile and a mile away from a new store see an increase in value of 1% to 2%, compared with the value of the dwellings 2.5 years earlier, the study claimed. That translates into price increases averaging $7,000 for the closest houses and $4,000 for those a mile away.

• The study was conducted by University of Chicago and Brigham Young University professors.

Dive Insight:

While the professors said the analysis adds to the understanding of Walmart’s economic impact on the areas where the retailer operates, they stopped short of claiming the chain stores are good for those communities. Still, the research counters common homeowner complaints that the discount giant’s presence in a neighborhood lowers housing values.