Legal Recreational Pot Boosts Your Property Value by a Lot
A new study from Clever Real Estate shows that legalizing recreational marijuana leads to significantly higher property values.
So, if you live in a state where retail sales of recreational marijuana are allowed, for every million added to the tax revenue from sales, your property gains $470 in price.
The analysis was made by comparing data from Zillow and the U.S. Census to explore the effects of three cannabis-related factors on property prices:
- the existence of recreational marijuana law
- sales tax revenue
- number of recreational dispensaries
As it turns out — all these caused home price values to spike.
Legalized recreational marijuana sales resulted in a home value difference of $17,113 compared to those that haven’t legalized recreational marijuana yet. All this for four years between 2017 and 2021.
Furthermore, recreational cannabis dispensaries brought $22,090 more to home value prices in the cities that hosted them. According to a study, a new recreational dispensary in your town means an additional $519 to your property.
Taxes had another significant impact on prices as well. Many of those are used to create a great deal of new infrastructure and services, making life for residents more comfortable, and thus, locations more attractive for living.
And, what better state to illustrate the influence of recreational pot than Colorado, the veteran of recreational cannabis use. Namely, ever since 2012 (legalization year), Colorado racked up billions due to the following effects:
- Creation of new businesses
- Opening of new job positions
- Increase in retail sales
- Hotel revenue rise
- More considerable interest in moving to Colorado
But Colorado is not alone. In 2019, the states with legalized marijuana collectively racked up $15 billion in revenue.
Given the ever-increasing cannabis sales for 4/20 and throughout the year, the study concluded that Illegal marijuana states miss out on significant financial boosts, an increase in the quality of education, and infrastructure.