LOS ANGELES CA, March, 26 ( Dr Cyberspace ) — by Robert Bishop — It’s true, home values increase near cannabis stores. Studies, about the effects of legalized marijuana on housing prices, continue to confirm that prices increase near retail cannabis outlets.
The legalization of recreational marijuana has had a positive impact on property values in the vicinity of retail cannabis stores. The findings cast doubt on the dire warnings of increased crime and chaos by law enforcement and other critics.
“Concerns about the potential effect on crime rates and the difficulty in policing impaired driving have been cited as reasons to slow-walk the path to full recreational legalization,” wrote the study’s authors.
“This research contributes to the discussion, providing evidence that recreational marijuana legalization has large positive spillover effects on the local housing market.”
Economists Tracked Listings on Zillow
Economists at the University of Oklahoma tracked listings on Zillow.com that focused on marijuana legalization in Colorado and Washington State. They found that marijuana retailers who opened cannabis shops in Colorado and Washington saw a 7% increase in property values.
Prior studies have produced similar results. Researchers, in 2018, at Colorado State University, found that home prices near a retail cannabis store rose by 7.7%.
Adult Use Marijuana Legalization Boosts Property Values
Research from the Wisconsin School of Business in 2017 also suggests that adult-use marijuana legalization boosts property values. Researchers found that home property values, in Colorado, near Denver’s retail cannabis shops, increased due to cannabis legalization.
“The presence of retail marijuana establishments clearly had a short-term positive impact on nearby properties in Denver,” said Moussa Diop, Wisconsin School of Business assistant professor, in a statement.
“This suggests that in addition to the sales and business taxes generated from the retail marijuana industry, municipalities may experience an increase in property taxes. It’s an important piece of the puzzle as more and more voters and policy-makers look for evidence about the effects of legalizing recreational marijuana, as the issue is taken up by state legislatures across the country.”
According to the study, since the start of Colorado’s recreational marijuana law, single-family residences within 0.1 miles of Denver’s cannabis shops increased in value by 8.4% more than properties located between 0.1 miles and 0.25 miles from the shops.
Home Values Increase Near Cannabis Stores By Around $27,000
The increase in property value is equal to around $27,000 for an average house in the area. Researchers believe it was marijuana-related employment growth that led to an increase in property values near marijuana retail stores. They also suggested lower crime rates, and additional amenities relating to their proximity to retail stores.
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