It’s all about location when it comes to real estate. For some, the perfect location is in a cannabis-friendly state that’s legalized recreationally and medically, with a dispensary and smoke shop on the same block. A recent study has shown a correlation between marijuana legalization and higher home values. According to economic analysis, the enactment of adult-use cannabis laws and retail sales is associated with increased property values as reported by Clever Real Estate.
A data analyst with the group said they reviewed, “publicly available data from Zillow and the U.S. Census, among other sources, to explore relationships between home values, marijuana legalization, dispensaries, and tax revenue.”
Matching up with a multitude of prior studies, the analysis reported, “Between April 2017 and April 2021, property values rose $17,113 more in states where recreational marijuana is legal, compared to states where marijuana is illegal or limited to medicinal use.” They continued their report, saying, “We found that cities with more dispensaries are positively correlated with higher home values, suggesting legalization boosts jobs and economic growth… with each new dispensary, a city adds, property values increase by $519.”
The analyst concluded her analysis: “As more states legalize marijuana, there is strong evidence that legalization drives higher property values – particularly in areas that allow recreational marijuana and welcome retail dispensaries… These investments can improve quality of life in communities across the nation while attracting tourism and new residents who drive real estate demand.”
The studies are making it glaringly obvious that legalizing marijuana can benefit everyone and increase their homes’ value; especially if they live in a location where cannabis is recreationally legal as well as having a couple of dispensaries in close proximity.