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Analysis: States with Legal Marijuana Have Big Boosts In Home Values

“States that haven’t legalized recreational cannabis are missing out.

Home values have appreciated to a greater degree in states where cannabis is legal as compared to those jurisdictions where it is not, according to an analysis published by the online service Clever Real Estate.

“Home values in states with recreational cannabis have outpaced home values in other states by $48,983 over the past decade,” the study found. “Of the ten states with the largest increases in home values, seven have legalized recreational cannabis. Meanwhile, of the ten states with the smallest increases in home values, nine have not legalized recreational cannabis.”

At the local level, authors reported: “There’s a notion that dispensaries hurt property values, but the data shows cities in recreational states that have dispensaries report better home-value growth than cities without dispensaries in legal states. … Cities in recreational states with dispensaries have seen home values grow $168,292 since 2014, $67,359 more than the $100,933 growth in cities with legal recreational cannabis but no dispensaries.”

Authors of the analysis concluded, “States that haven’t legalized recreational cannabis are missing out on a range of economic benefits, with one of the biggest being a rapid appreciation in home values.”

The report’s findings are consistent with those of other analyses reporting an association between the establishment of legal marijuana businesses and elevated home values.

Full text of the report, “States with Legal Cannabis See $49,000 Boost on Home Appreciation,” is available online. Additional information is available from NORML’s Fact Sheet, Societal Impacts of Cannabis Dispensaries/Retailers.

This summary was syndicated via NORML