There are often many questions asked when states consider legalizing cannabis, many of which center on property values. Concerns over increased crime and pungent cannabis aromas lead residents to wonder how their home prices will be affected.
As it turns out, the majority of these concerns are moot. In fact, new data shows that legal weed may actually be a boon for property owners. According to an analysis first reported by Green Market Report, average property value increases by roughly $4,400 every year dispensaries are open.
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The report looked at median home prices in zip codes with dispensaries and compared them with those in nearby communities. One major data point driving the results is the fact that dispensaries often open in “less desirable” parts of a city due to zoning restrictions (according to the report). These areas already have a lower median property value, which may explain post-legalization gains.
In Denver, homes near dispensaries saw values increase by nearly seven percent more than the rest of the city in the last four years. Over in Boulder, homes near dispensaries are growing in value by an average of two percentage points higher. In Detroit, the number was closer to 50 percent.
Not every community benefited from legalization. Home prices decreased by 0.84 percent in Ann Arbor, Mich., while the rest of the city saw 6.6 percent gains. The report also called out decreases in Portland, although they were “much less significant.”
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It’s not the first time legalization has been linked with higher home values. A 2023 analysis found a direct correlation between legal weed and increased property values.
The benefits of cannabis legalization don’t end at property values. Studies show roads may actually be safer post-reform while the number of teens trying weed goes down. Not to mention the boost in tax revenue and the creation of jobs.
Despite what prohibitionists may believe, cannabis legalization leads to many positive outcomes for communities. And while there may be drawbacks, evidence shows that the pros outweigh the cons—even for folks who may never consume the plant at all.
