The exploding cannabis market has, for a long time now, been of interest to people in industries which seemingly have little to do with it. A decade ago, most people following cannabis legislation were mostly restricted to vested cannabis advocates and opponents. But now seemingly everyone, from Coca-Cola to Walgreens, from venture capitalists to Presidential candidates, have taken a large interest in the bajillion dollar industry of marijuana.
Weed is also being watched by the real estate industry. This week a new study from the real estate listing site Clever shows the relationship between cannabis legalization.
If the study is correct, that relationship is a good one. Since 2014, homes in cities with legalized marijuana increased in value $22,888 more than cities without it.
Denver, Colorado has seen particularly bountiful boosts in real estate value since legalization. The city, which has 180 dispensaries, has experienced a rise in property value to the tune of 67.8% since 2014.
So, why would legalized weed cause an uptick in housing prices? One study conducted by the University of Mississippi in 2017 hypothesizes that recreational cannabis “attracts more home buyers, including marijuana users as well as entrepreneurs and job seekers.”
In other words, the green rush of cannabis stimulates the economy. More businesses are created, so more workers come to those cities to get jobs, so there is a greater demand for housing.
Another study from the Cato think tank found that the closer homes were to cannabis dispensaries, the more their worth increased. Housing within 0.8 miles of a pot shop, the study said, increased an average of 8.4% higher than homes which were further away.
So if you’re planning on buying a home and want it to be a good investment, make sure you follow your nose to a neighborhood that smells like the dank.
Photo via Flickr user Ryan Bjorkquist