Homeowners who live in cities where recreational marijuana is legal can breathe a sigh of relief: Home values in those area have grown by $6,337 more than in towns where it remains illegal, according to a Clever Real Estate study.
The study, which utilized housing data from Zillow, analyzed home values in cities where marijuana has been legalized. While homes values in cities with legalized marijuana grew by $6,337 between 2017 and 2019, cities within close access to legal dispensaries saw the largest growth of all — an average of $22,888, or 8.4 percent, more per home between 2014 and 2019.
Meanwhile, cities that only allow medical marijuana use saw the same growth as cities where all marijuana use remains illegal. While marijuana is illegal on a federal level, many states have taken steps to legalize the drug since 2012.
Currently, marijuana is legal in Colorado, Washington, Oregon, California, Nevada, Alaska, Michigan, Vermont, Massachusetts, Maine and the District of Columbia. Fourteen other states have decriminalized marijuana, which means that possessing small amounts is treated like a civil violation.
Every since states began legalizing recreational marijuana in 2012, homeowners have expressed concern that the drug’s increased use would lead to higher crime rates and lower property values. According to Clover’s findings, however, the reverse appears to be happening — many homebuyers, particularly younger ones, are specifically seeking out homes in states where marijuana is now legal.
Real estate teams should demand more. Here’s why. They deliver results, but often lack the support of their brokerage. But there are options. READ MORE
“States that legalize recreational cannabis see an immediate bump in home values following legalization, even without retail dispensaries opening up,” the study reads.
Colorado and Washington, which were the first two states to legalize recreational