According to research by a team of economists from University of Oklahoma, the passing of marijuana sales by states is associated with home values increasing.
The researchers stated that their “results suggest that preferences for public services – derived from a new source of tax revenue – and dispensaries as a commercial amenity create largely positive effects following the legalization of recreational marijuana,” NORML reported.
In Colorado and Washington, the researchers determined that houses in neighborhoods with new dispensary openings nearby saw 7% price appreciation.
They assessed the relationship between regional home values and state-specific cannabis legalization and found “a large positive spillover effect on the housing market following legalization.” In particular, “a five percent appreciation in home prices following the passage of RML (recreational marijuana laws) and an 11 percent appreciation once sales of marijuana products begin.”
Other studies over the last decade have also found that both medical and recreational cannabis legalization can lead to an increase in home values.