Do retail store (B&M) revenues correlate with residential property prices ?

Under consideration are big chain stores like Walmart, Homedepot, Lowes, Walgreens, etc.

Does the revenue of stores like this correlate with the residential property values ? Say the average property value in a certain part of a state (residential) is $50 per square foot and another part of the state it is $100 per square foot. Will two identical homedepots located in each part have the revenues in the same ratio ?

Also, do property values correlate with median income ?


Lowes and Home Depot revenues are a lot more correlated with new construction and with household turnover than just with property values as such.

Also the direction of property values is a lot more important than their absolute value. In an area of rising values you’ll have more turnover and (historically) more people taking out their new-found equity and in many cases reinvesting it in the residence via improvements. In an area with sinking values nobody is putting a nickel into their houses. Even if the median house is $200K in both places you’ll sure see a difference in sales between them.

I can’t speak to the others.

I note that in the UK there is a trend from DIY to PSETDI (Pay Someone Else To Do It)

Locally a major DIY store has sold half their shed to a supermarket.

There is a much more direct relationship between per capita and household incomes and store sales than there is with property values. Disposable income drives retail sales, and disposable is what’s left after paying required monthly expenses such as the mortgage or rent and other more or less fixed monthly expenses. So, two areas with similar incomes buy different home costs will see a difference in retail sales related to the difference in disposable income after housing.

As to your second question, property values definitely correlate with incomes, though that also varies by region. Housing costs are much higher compared to incomes in certain areas of the country, but within a market there is high correlation.

A related issue is the decline in owner-occupied dwellings. One of the side effects in the US at least of the Great Real Estate Crash of 2008 is that lots more people will be lifetime renters than lifetime homeowners going forward.

Which certainly alters the DIY/PSETDI equation.