Home values in cities with adult-use cannabis markets are up by $6.337 from 2014 prices compared to cities that do not allow recreational cannabis sales, according to a Clever Real Estate study. From 2014, home prices in cities “within close access to legal dispensaries” were up 8.4 percent – an average of $22,888.
The highest increases in the housing prices were in Colorado and Washington – who became the first states to legalize cannabis for recreational use in 2012. The study does point out that other factors do play a role in statewide house price increases; the West Coast housing market has seen steady growth since 2012 that can’t be attributed to the 2016 voter-approved legalization law, for example.
Post-legalization, some states have seen an increase in industrial property values that are used for cultivation and processing. Last year in Sonoma County, California, industrial properties for cannabis businesses saw a 50 percent increase in price over similar non-cannabis properties.
Many critics of legal cannabis fear potential crime increases following legalization which could lead to a possible reduction in home values related to that crime. A study earlier this year by the School of Public Affairs at the University of Colorado Denver did note an initial increase in crime rates after a dispensary opens in a neighborhood but that spike “weakened significantly over time.”
Read more from the source: Ganjapreneur.com
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