Why it matters: The study found that home values in states that have legalized cannabis, both for recreational and medical use, have experienced higher growth compared to states where cannabis is still prohibited. This suggests that the legalization of cannabis may have a positive impact on real estate markets.
What they are saying: The research shows that property values in states with recreational cannabis have increased by $185,075 since 2014, while values in non-legal states only rose by $136,092 over the same period. Additionally, typical home values in adult-use states are 41% higher than in prohibition states. The presence of legal cannabis in cities and states does not diminish property values, but rather offers economic benefits to local communities.
The big picture: The study reveals a correlation between the legalization of cannabis and higher home values. It also indicates that cities with dispensaries in recreational cannabis states experience better property value growth than cities without pot shops. Furthermore, states with legalized cannabis are projected to generate significant revenue, with an average of over $1 billion in cannabis revenue per state in 2023.
What to watch: It would be interesting to observe how the real estate markets in states that have recently legalized cannabis, such as New York and New Jersey, are affected. Monitoring the continued growth and impact of cannabis tax revenue on public programs and investments would also be worth watching.
Take: The findings of this study support the notion that legalizing cannabis can have positive effects on real estate markets. The higher home values in states with legalized cannabis indicate increased demand and economic activity in these areas. This research could provide insight for policymakers and market participants considering cannabis legalization, highlighting the potential benefits that can be derived from the industry.