As more states approve medical cannabis and legalize recreational cannabis, the amount of data proving that cannabis dispensaries increase local property values continues to pile up.
Numerous studies conducted by researchers, companies, and even real estate associations not only show that property values increase when dispensaries open nearby but also that property values jump when cannabis is legalized at the state level – long before legal retail dispensaries open.
Despite arguments to the contrary, the cannabis industry bolsters commercial and residential real estate investments. The numbers speak for themselves.
Here’s What the Data Says about Cannabis Dispensaries and Property Values
The Western Economic Association International published a study in its July 2019 Contemporary Economic Policy journal that found property values within a half-mile radius of a cannabis dispensary increase by 7.7%, and the value drops as the distance from the dispensary increases.
Also in 2019, the team at Clever Real Estate conducted a deep analysis of housing prices and the relationship between property values and cannabis dispensary locations. They discovered that between 2014 and 2019, cities which allow cannabis dispensaries (medical and/or recreational) experienced greater increases in home values than cities where cannabis is illegal. Clever Real Estate found that the effect brings up the entire city’s home values at a rate higher than the national average.
