According to a recent report on real estate trends, home values in states with legalized marijuana have increased at a much higher rate than in non-legalized states. The average price of a house in a state that has legalized cannabis is now 41 percent more expensive than in those states that continue to criminalize the drug.
The study by Real Estate Witch and Leafly examined average home prices between 2014 and 2023. It also looked at the impact that regulated cannabis use for recreational or medical purposes could have on real estate values.
Analysis found that the average home price in states which have legalized adult-use marijuana has increased by $185.075 in the last three years, while it only rose $136.092 in the non-legal states. The average value of a home in a recreationally-oriented state was $417,625, whereas the average price for a home in a non-recreational-oriented state was $295,338. This is a difference of 41 percent.
The report showed that the home price growth of medical cannabis states was faster than that of states that have not yet implemented reform. Home values in medical marijuana states grew by an average of $166,609 compared to those in prohibition states, where prices grew by an average of $137,320.
The report states that it’s not surprising to see significant increases in the property values of all the U.S. states, as the value for real estate increases over time. The report says that the gap between the home values of legal and illegal states is growing.
The study also found that home values and local access to dispensaries that are regulated were related. The average home price in cities with licensed retailers who operate within legal states has increased by $168.292 since 2014. In cities without dispensaries the average home price increased by $105,933. This is a difference of $67,359.
This report is a testament of what cannabis insiders have known for years: the presence of legal marijuana in cities and state does not reduce property values. Josh deBerge , vice president of Leafly’s brand and communication, said that the exact opposite is true. This report shows that regulated cannabis has a number of benefits for local communities.
NEW Data in Collaboration with @Leafly : The average home in a recreational cannabis-legal state is worth $417.625 – 41% ($122.287) more than in non-recreational States ($295,338).
Read more on how #cannabislegalization impacts #homevalues https://t.co/onA9Bpg4el pic.twitter.com/vVV8Erc0th
Clever Real Estate (@ListWithClever October 31 2023
Authors of the report don’t try to explain why there is a link between legalization and increased home values, but many factors may be involved. Previous studies showed that regulated accessibility could influence people to move from one state to another.
Previous analyses, such as one from 2021, which used data from the online real estate marketplace Zillow to analyze, also showed that marijuana is associated with higher property values. This report found that home values rose $6,338 in states where marijuana was legalized in some form.
A separate study by economists from the University of Oklahoma found in 2020 that states that legalize cannabis will see an increase in housing prices. The effect is most noticeable once retail outlets are opened nearby.
Trump Team says DeSantis should use marijuana edibles to deal with presidential campaign stress
Max Pixel .
The post Home values have increased significantly more in states that legalized marijuana than those that kept criminalization, real estate study finds appeared on Marijuana moment.
