Real estate prices are climbing in cities with legal access to recreational cannabis.
That’s the key finding of a recent study from Clever Real Estate, which analyzed market data from 2014 to 2019 and found that the value of homes in cities with legal cannabis dispensaries increased $22,888 more than homes in places where the drug continues to be prohibited. And it appears that cities don’t actually have to open dispensaries in order to benefit from this boon.
“States that legalize recreational cannabis see an immediate bump in home values following legalization, even without retail dispensaries opening up,” the study claimed.
The highest increases in property value occurred in states where recreational cannabis has been legal the longest. Homes in Colorado and Washington state have seen the largest boosts in value. But some cities are reaping more benefits than others.
“Since Denver retail dispensaries opened their doors on January 1, 2014, residential property values have increased 67.8 percent, the most significant growth in over two decades,” the study noted.
But legalizing medical marijuana doesn’t seem to have effect on property value, said the study’s authors. home value, according to the study’s authors.
“For cities where only medicinal marijuana is legal, home values increased at a comparable rate to cities where marijuana is illegal; a statistically significant increase in home values could not be attributed to medicinal marijuana legalization.”
The study is good news for folks who just so happened to be living in neighborhoods that are now home to recreational cannabis dispensaries. However, people looking to move to cities with developed cannabis market should expect to pay a little more than they might have a few years ago.