Legalizing marijuana is associated with an immediate increase in housing prices, according to a new report published by the online service Clever Real Estate.
According to the study, “States that legalize recreational cannabis see an immediate bump in home values following legalization, even without retail dispensaries opening up. From 2017 to 2019, cities where recreational marijuana is legal saw home values increase $6,337 more than cities where marijuana is illegal” – this was determined after controlling for potential confounders. There was an even greater increase in overall home prices for cities that regulated retail marijuana facilities By contrast the report did not identify a similar significant increase in home prices in cities where only medical cannabis was legally regulated.
According to NORML, “Regarding crime rates following the passage of legalization, the study failed to identify any overall trends in legal states that significantly differed from the national average. ”
The study states: “The crime rate increases in Washington and Colorado are consistent with nationwide violent crime trends since 2014. … Using Colorado and Washington as case studies, it’s clear that the market benefits from marijuana legalization outweigh the potential costs in terms of home values,”.
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