Insight

Legal Marijuana Leading to “Higher” Home Values?

Legal Marijuana Leading to “Higher” Home Values?

Roy D. Oppenheim

Roy D. Oppenheim

October 28, 2019 10:12 AM

It’s no secret that there is an ongoing trend across the country of states allowing marijuana sales for both medicinal and recreational means. We now have data on how legal marijuana sales can affect home values in those states and cities that allow it compared to those that don’t. The results may surprise you!

Marijuana may be Your New Friendly Neighbor

A recent study from Clever Real Estate analyzed the impact legalization has had on local housing markets. From 2014 to 2019, they found that, on average, cities with retail dispensaries saw home values increase $22,888 more than cities where marijuana is illegal. Moreover, The CATO Institute found that single-family residences within 0.1 miles of a cannabis dispensary increased in value by approximately 8.4% relative to residences located further away.

legal marijuana

In 2012, Colorado was one of the two first states to pass an initiative legalizing possession and sales of marijuana for recreational purposes. The legislation allowed municipalities in the state to permit or prohibit retail marijuana sales within their jurisdictions. Overall, a 2018 research paper posted in Economic Inquiry found that legalization increased housing values in Colorado by about 6% which translates to an average of $15,600 per house. Specifically, homes in the jurisdictions permitting the retails sales had their values increase at a faster rate than jurisdictions prohibiting sales.

Why Home Values are Seeing Green

Many factors are believed to be involved in the noticeable increase in home values where marijuana has been legalized. One study found that areas where marijuana is legal attract not only users but entrepreneurs and job seekers which cause higher demand and a lower supply of residential housing. The scale of investment is striking as there are now more dispensaries in Colorado than Starbucks, McDonald’s and 7-Elevens combined. Similar to our article on how close proximity to grocery stores increase home values, people will pay more to live in areas with desirable amenities. Denver residents hosting their properties on Airbnb have even seen strong results from their advertising aimed at “pot tourism.”

Not an Issue of “If” but “When?”

Recent polls show that Americans, of all demographics, now decisively support legalizing marijuana use and sales. How much so? A CBS poll from April found that a record-high 65% of Americans support legalization and most even go a step further to say that legalization would be good for their local economy. Closer to home, a Quinnipiac University poll from June showed that Floridians also back legalizing possession and 61% would support the sale of legal marijuana in their community. With multiple bills in Congress ranging from decriminalization to outright legalization, it may just be a matter of time.

Let us know your thoughts about the legalization of marijuana and increased home values below!

From the trenches,

Roy Oppenheim

Related Articles

What Legalizing Recreational Marijuana Means for Indiana


by Rock Lee

What will marijuana legalization mean for business, past conviction, and beyond?

Legalizing Marijuana in Indiana

There’s Hope for the Canadian Real Estate Market Post COVID-19


by Steven Tulman

Clover Mortgage offers advice and predictions on the Toronto real estate market as we move on post-pandemic.

Canadian Real Estate Market Post COVID-19

Brick to Click


by Lindsay Mesh Lotito

Trends in commercial real estate have been fast-tracked by the pandemic. Here’s what lenders and borrowers must do to ensure their viability in a rapidly changing world.

Online Shopping Shifts Commercial Real Estate

East Side Story


by Adam Leitman Bailey

The made-for-Hollywood tale of a 16-year legal tussle to help a dedicated band of Manhattan “homesteaders” take ownership of the buildings they had moved into and begun to rehab.

Rosario Dawson's Family Fight for NY Building

Shake On It


by Justin Smulison

The importance of proper documentation in real estate dealings is highlighted by the legal repercussions many have faced after brokering non-binding handshake deals.

Real Estate Handshake Deals Are Non-binding

House Trap


by Heidi E. Storz

Special districts are often being used as profit centers that leave residents to foot the bill. These homeowners deserve protection from unscrupulous developers who attempt to fleece them and avoid accountability.

Special Districts Changing Property Ownership

Announcing the 2022 Best Lawyers: Real Estate and Infrastructure Publication


by Best Lawyers

Featuring the top legal talent from The Best Lawyers in America, Best Lawyers: Ones to Watch in America and "Lawyer of the Year" recipients for real estate and infrastructure as well as thought leadership from some of the nation's top lawyers.

Real Estate and Infrastructure Publication

Choosing a Title Company: What a Seller Should Expect


by Roy D. Oppenheim

When it comes to choosing a title company, how much power exactly does a seller have?

Choosing the Title Company As Seller

The Green Rush: Cannabis Is a Growing Industry


by Justin Smulison

Connecticut announced it will legalize high-THC cannabis for adult use on July 1, making it the 19th state to do so in the U.S. As of June 2021, 38 states and Puerto Rico have legalized cannabis for medical use.

Cannabis Legalized in Connecticut

When a Dream Home Becomes a Nightmare


by Peter B. McGlynn and Robert Stetson

A modern-day Bleak House* offers a cautionary tale about buying real estate—and a legal strategy that helped our clients gain redress.

Blueprint of a house with yellow caution signs

Gimme Shelter


by Janice Zhou

Being able to afford housing in Boston, and other desirable cities like it, is increasingly out of reach for too many. What can be done, legally and politically, to combat the problem?

Housing Shortage in Boston

WATCH: Best Lawyers Discusses COVID-19 & Rental Agreements


by Best Lawyers

Three legal experts join the CEO of Best Lawyers to talk about a general approach to “the rental” market and what happens if tenants can’t pay rent in May.

COVID-19 Panel: Rental Agreements

Impact of Climate Change on Real Estate Law


by Best Lawyers

Dr. Christian Schede discusses rent in large cities, the effect of Airbnb, and more.

An Interview With Greenberg Traurig

Eyes Set on Lincoln Road Development


by Best Lawyers

Plus other news involving South Florida's Best Lawyers

Eyes Set on Lincoln Road Development

An Interview With Bryan Cave Leighton Paisner


by Best Lawyers

Russia’s 2020 “Law Firm of the Year” honoree for Real Estate Law

Bryan Cave Leighton Paisner–LFOTY

Changing for the Better


by Justin Smulison

Joseph Brophy’s Austin-based boutique firm comprises some of the most talented and experienced civil litigators in Texas.

Betting on Finance, Civil Litigation Success

Trending Articles

The Real Camille: An Interview with Johnny Depp’s Lawyer Camille Vasquez


by Rebecca Blackwell

Camille Vasquez, a young lawyer at Brown Rudnick, sat down with Best Lawyers CEO Phillip Greer to talk about her distinguished career, recently being named partner and what comes next for her.

Camille Vasquez in office

Announcing The Best Lawyers in The United Kingdom™ 2023


by Best Lawyers

The results include an elite field of top lawyers and firms from the United Kingdom.

The Best Lawyers in The United Kingdom 2023

Johnny Depp and Amber Heard: The Best Lawyers Honorees Behind the Litigation


by Gregory Sirico

Best Lawyers takes a look at the recognized legal talent representing Johnny Depp and Amber Heard in their ongoing defamation trial.

Lawyers for Johnny Depp and Amber Heard

Announcing The Best Lawyers in France™ 2023


by Best Lawyers

The results include an elite field of top lawyers and firms from France.

Blue, white and red strips

Announcing The Best Lawyers in Germany™ 2023


by Best Lawyers

The results include an elite field of top lawyers and firms from Germany.

Black, red and yellow stripes

Education by Trial: Cultivating Legal Expertise in the Courtroom


by Margo Pierce

The intricacies of complex lawsuits require extensive knowledge of the legal precedent. But they also demand a high level of skill in every discipline needed to succeed at trial, such as analyzing technical reports and deposing expert witnesses.

Cultivating Legal Expertise in the Courtroom

Announcing The Best Lawyers in Belgium™ 2023


by Best Lawyers

The results include an elite field of top lawyers and firms from Belgium.

Black, yellow and red stripes

Announcing the 2022 Best Lawyers® in the United States


by Best Lawyers

The results include an elite field of top lawyers listed in the 28th Edition of The Best Lawyers in America® and in the 2nd Edition of Best Lawyers: Ones to Watch in America for 2022.

2022 Best Lawyers Listings for United States

Announcing the 2022 Best Lawyers™ in France


by Best Lawyers

The results include an elite field of top lawyers and firms, including our inaugural Best Lawyers: Ones to Watch recipients.

Announcing the 2022 Best Lawyers™ in France

Choosing a Title Company: What a Seller Should Expect


by Roy D. Oppenheim

When it comes to choosing a title company, how much power exactly does a seller have?

Choosing the Title Company As Seller

We Are Women, We Are Fearless


by Deborah S. Chang and Justin Smulison

Athea Trial Lawyers is a female owned and operated law firm specializing in civil litigation, catastrophic energy, wrongful death and product liability.

Athea Trial Law Female Leadership and Success

Announcing the 2022 Best Lawyers™ in Germany


by Best Lawyers

The results include an elite field of top lawyers and firms, including our inaugural Best Lawyers: Ones to Watch recipients.

Announcing the 2022 Best Lawyers™ in Germany

U.K. Introduces Revisions to Right-to-Work Scheme and Immigration Rules


by Gregory Sirico

Right-to-Work Scheme and Immigration Rules in

Destiny Fulfilled


by Sara Collin

Was Angela Reddock-Wright destined to become a lawyer? It sure seems that way. Yet her path was circuitous. This accomplished employment attorney, turned mediator, arbitrator and ADR specialist nonpareil discusses her career, the role of attorneys in society, the new world of post-pandemic work and why new Supreme Court Justice Ketanji Brown Jackson represents the future.

Interview with Lawyer Angela Reddock-Wright

Famous Songs Unprotected by Copyright Could Mean Royalties for Some


by Michael B. Fein

A guide to navigating copyright claims on famous songs.

Can I Sing "Happy Birthday" in Public?

What the Courts Say About Recording in the Classroom


by Christina Henagen Peer and Peter Zawadski

Students and parents are increasingly asking to use audio devices to record what's being said in the classroom. But is it legal? A recent ruling offer gives the answer to a question confusing parents and administrators alike.

Is It Legal for Students to Record Teachers?