Insight

Legal Marijuana Leading to “Higher” Home Values?

Legal Marijuana Leading to “Higher” Home Values?

Roy D. Oppenheim

Roy D. Oppenheim

October 28, 2019 10:12 AM

It’s no secret that there is an ongoing trend across the country of states allowing marijuana sales for both medicinal and recreational means. We now have data on how legal marijuana sales can affect home values in those states and cities that allow it compared to those that don’t. The results may surprise you!

Marijuana may be Your New Friendly Neighbor

A recent study from Clever Real Estate analyzed the impact legalization has had on local housing markets. From 2014 to 2019, they found that, on average, cities with retail dispensaries saw home values increase $22,888 more than cities where marijuana is illegal. Moreover, The CATO Institute found that single-family residences within 0.1 miles of a cannabis dispensary increased in value by approximately 8.4% relative to residences located further away.

In 2012, Colorado was one of the two first states to pass an initiative legalizing possession and sales of marijuana for recreational purposes. The legislation allowed municipalities in the state to permit or prohibit retail marijuana sales within their jurisdictions. Overall, a 2018 research paper posted in Economic Inquiry found that legalization increased housing values in Colorado by about 6% which translates to an average of $15,600 per house. Specifically, homes in the jurisdictions permitting the retails sales had their values increase at a faster rate than jurisdictions prohibiting sales.

Why Home Values are Seeing Green

Many factors are believed to be involved in the noticeable increase in home values where marijuana has been legalized. One study found that areas where marijuana is legal attract not only users but entrepreneurs and job seekers which cause higher demand and a lower supply of residential housing. The scale of investment is striking as there are now more dispensaries in Colorado than Starbucks, McDonald’s and 7-Elevens combined. Similar to our article on how close proximity to grocery stores increase home values, people will pay more to live in areas with desirable amenities. Denver residents hosting their properties on Airbnb have even seen strong results from their advertising aimed at “pot tourism.”

Not an Issue of “If” but “When?”

Recent polls show that Americans, of all demographics, now decisively support legalizing marijuana use and sales. How much so? A CBS poll from April found that a record-high 65% of Americans support legalization and most even go a step further to say that legalization would be good for their local economy. Closer to home, a Quinnipiac University poll from June showed that Floridians also back legalizing possession and 61% would support the sale of legal marijuana in their community. With multiple bills in Congress ranging from decriminalization to outright legalization, it may just be a matter of time.

Let us know your thoughts about the legalization of marijuana and increased home values below!

From the trenches,

Roy Oppenheim

Related Articles

Evolving Marijuana Laws and the Workplace


by Tess P. Anglin

How can employers enforce statutes that differ from state to state?

Red image of a marijuana leaf

What Legalizing Recreational Marijuana Means for Indiana


by Rock Lee

What will marijuana legalization mean for business, past conviction, and beyond?

Legalizing Marijuana in Indiana

Client Service in Real Estate Law: Identifying Attorneys Who Truly Care


by Best Lawyers

What is client service in real estate law, and why is it important? Learn more about the value a real estate lawyer who emphasizes client service can provide.

Two unseen individuals shake hands with miniature house models in background

IN PARTNERSHIP

Foiled Plans: How Adam Leitman Bailey, P.C. Thwarted A Famous Building’s Trickery


by Rebecca Blackwell

When the Frick building, planned renovations that would threaten the welfare of nearby residents, Adam Leitman Bailey, P.C. jumped in to uncover the truth.

Front of the Frick Building in New York City

4 Essential Steps for Commercial Real Estate Due Diligence


by Best Lawyers

Due diligence in real estate is essential for all parties. Best Lawyers walks through the key steps of effective due diligence in commercial real estate.

Animated magnify glass in front of building and checklist

The Role of Title Insurance in Real Estate Transactions


by Best Lawyers

Title insurance can provide benefits, protection and peace of mind in a real estate transaction, which can often be complex. Best Lawyers take a closer look.

Individual signing a document with house keys in background

Leasing Commercial Real Estate


by Best Lawyers

We have compiled this “leasing commercial real estate checklist” to help guide discussions with a commercial real estate lawyer before signing a lease.

Unseen figure with pen points to apartment building model

IN PARTNERSHIP

A Street Fight in the Bronx


by Adam Leitman Bailey

Adam Leitman Bailey’s firm helped settle a Bronx brawl over land between two parties and brought victory against a long-standing powerful family in New York.

Warehouse in New York at night

IN PARTNERSHIP

Heroes Among Men: How Adam Leitman Bailey, P.C. Saved Lives of the Lifesaving


by Rebecca Blackwell

When a 911 Center in New York City was put in danger, Adam Leitman Bailey, P.C. went to work against the unlawful and hazardous actions of a developer whose construction threatened the peace and safety of all who worked for the Fortune 500 company.

Danger construction site no trespassing sign on fence

Employers Are Budding Heads on Marijuana in the Workplace


by M. Tae Phillips and Melanie C. Cormier

As employment lawyers, we receive many questions from employers navigating marijuana legalization. Below, we answer the top three most asked questions.

Statue of Liberty holding a marijuana joint

The Role of Flood Zones in Florida Real Estate Transactions


by Best Lawyers

Get a comprehensive understanding of flood zones in Florida real estate. Learn about the risks, insurance requirements and disclosure obligations.

Trees blowing in flood waters and storm

How Real Estate Transactions in the Residential Sector Work


by Best Lawyers

Discover how real estate transactions in the residential sector work with this guide. Learn about the stages, parties involved and legal requirements.

Man looking at houses on computer

IN PARTNERSHIP

Adam Leitman Bailey Saves Upper East Cooperative From Forced NYU Combination With Neighboring University Building


by Rebecca Blackwell

When a New York resident of an iconic building was faced with a potentially devastating renovation to his beloved home, powerhouse real estate lawyer Adam Leitman Bailey tightened the knot on the loophole others said didn’t exist.

Large brownstone building with blue sky above in New York City

IN PARTNERSHIP

Residential Real Estate Slowdown Expected To Continue in 2023


by Mick Harris

Rising housing costs and mortgage rates were becoming the norm in 2022. Experts anticipate that 2023 may show much of the same.

Apartment buildings with yellow haze

IN PARTNERSHIP

How To Run a Board Meeting


by Adam Leitman Bailey

Adam Leitman Bailey explains how using Robert's Rules of Order can assist with effective and productive board meetings in real estate matters.

Several people sitting in chairs around boardroom table

IN PARTNERSHIP

The Wolf Near Wall Street


by Rebecca Blackwell

When tensions among shared real estate owners reached their tipping point, Adam Leitman Bailey P.C. stepped in and solved a modern issue with an ancient remedy.

Mortgage documents on desk

Trending Articles

2025 Best Lawyers Awards Announced: Honoring Outstanding Legal Professionals Across the U.S.


by Jennifer Verta

Introducing the 31st edition of The Best Lawyers in America and the fifth edition of Best Lawyers: Ones to Watch in America.

Digital map of the United States illuminated by numerous bright lights

Unveiling the 2025 Best Lawyers Awards Canada: Celebrating Legal Excellence


by Jennifer Verta

Presenting the 19th edition of The Best Lawyers in Canada and the 4th edition of Best Lawyers: Ones to Watch in Canada.

Digital map of Canadathis on illuminated by numerous bright lights

Legal Distinction on Display: 15th Edition of The Best Lawyers in France™


by Best Lawyers

The industry’s best lawyers and firms working in France are revealed in the newly released, comprehensive the 15th Edition of The Best Lawyers in France™.

French flag in front of country's outline

Announcing the 13th Edition of Best Lawyers Rankings in the United Kingdom


by Best Lawyers

Best Lawyers is proud to announce the newest edition of legal rankings in the United Kingdom, marking the 13th consecutive edition of awards in the country.

British flag in front of country's outline

Announcing the 16th Edition of the Best Lawyers in Germany Rankings


by Best Lawyers

Best Lawyers announces the 16th edition of The Best Lawyers in Germany™, featuring a unique set of rankings that highlights Germany's top legal talent.

German flag in front of country's outline

Prop 36 California 2024: California’s Path to Stricter Sentencing and Criminal Justice Reform


by Jennifer Verta

Explore how Prop 36 could shape California's sentencing laws and justice reform.

Illustrated Hands Breaking Chains Against a Bright Red Background

Celebrating Excellence in Law: 11th Edition of Best Lawyers in Italy™


by Best Lawyers

Best Lawyers announces the 11th edition of The Best Lawyers in Italy™, which features an elite list of awards showcasing Italy's current legal talent.

Italian flag in front of country's outline

Combating Nuclear Verdicts: Empirically Supported Strategies to Deflate the Effects of Anchoring Bias


by Sloan L. Abernathy

Sometimes a verdict can be the difference between amicability and nuclear level developments. But what is anchoring bias and how can strategy combat this?

Lawyer speaking in courtroom with crowd and judge in the foreground

Things to Do Before a Car Accident Happens to You


by Ellie Shaffer

In a car accident, certain things are beyond the point of no return, while some are well within an individual's control. Here's how to stay legally prepared.

Car dashcam recording street ahead

The Push and Pitfalls of New York’s Attempt to Expand Wrongful Death Recovery


by Elizabeth M. Midgley and V. Christopher Potenza

The New York State Legislature recently went about updating certain wrongful death provisions and how they can be carried out in the future. Here's the latest.

Red tape blocking off a section of street

Tampa Appeals Court ‘Sends Clear Message,” Ensuring School Tax Referendum Stays on Ballot


by Gregory Sirico

Hillsborough County's tax referendum is back on the 2024 ballot, promising $177 million for schools and empowering residents to decide the future of education.

Graduation cap in air surrounded by pencils and money

Find the Best Lawyers for Your Needs


by Jennifer Verta

Discover how Best Lawyers simplifies the attorney search process.

A focused woman with dark hair wearing a green top and beige blazer, working on a tablet in a dimly

Key Developments and Trends in U.S. Commercial Litigation


by Justin Smulison

Whether it's multibillion-dollar water cleanliness verdicts or college athletes vying for the right to compensation, the state of litigation remains strong.

Basketball sits in front of stacks of money

Is Premises Liability the Same as Negligence?


by Jeremy Wilson and Taylor Rodney Marks

In today's age, we are always on the move, often inhabiting spaces we don't own. But what happens when someone else's property injures you or someone you know?

A pair of silhouetted legs falling down a hole with yellow background

Woman on a Mission


by Rebecca Blackwell

Baker Botts partner and intellectual property chair Christa Brown-Sanford discusses how she juggles work, personal life, being a mentor and leadership duties.

Woman in green dress crossing her arms and posing for headshot

Best Lawyers Celebrates Women in the Law: Ninth Edition


by Alliccia Odeyemi

Released in both print and digital form, Best Lawyers Ninth Edition of Women in the Law features stories of inspiring leadership and timely legal issues.

Lawyer in green dress stands with hands on table and cityscape in background