Legal Marijuana is Affecting Colorado’s Housing Market
A new study has found that not only is the legalization of recreational marijuana affecting Colorado's housing market, but also why.
The study, conducted by Clever Real Estate, determined that ever since recreational marijuana was legalized in Colorado back in 2012, the housing market has skyrocketed and has issued a report on why they believe it has.
Apparently, all of the states that have legalized recreational marijuana have shown an average of a $17,000 increase in home values nationwide.
Clever Real Estate Researcher and Writer Michelle Delgado had this to say about their findings on why this might be the case:
We were very interested in understanding more about why recreational marijuana has such an impact on home values. It seems to us there are quite a few factors that are intertangled here. First, new industries attract more jobs and employees looking for homes. Then, of course, tax revenue. These laws that are legalizing the marijuana industry bring in billions of dollars across the country in tax revenue. In Colorado, that goes entirely into education, and so people want to live where there are great schools. Other states use the revenue for things like public health, transportation — just things that can really improve quality of life in a state and all these contribute collectively to higher home values. Places that allow recreational dispensaries saw home values increase by about $22,000 more than cities that don’t allow those dispensaries. And each new dispensary adds another $500 to home values according to our model.
Delgado also said that out of the 742 marijuana dispensaries in Colorado, 574 sell marijuana for recreational use.