Many proponents of cannabis legalization emphasize the promised benefits of legalization, like job creation and more funding from taxes. However, an additional, lesser-known benefit is the impact on the real estate market.
According to a new Clever Offers report, home values in states with legal recreational marijuana use increased by $60,327 more than in states without legalization.
The report looked at property values from 2009 to 2024. During this time period, home values in states where recreational marijuana is legal increased by $222,958, compared to the $162,631 increase of home values in states where it is illegal.
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The report also found that even states that have legalized medicinal marijuana have seen home values increase. From 2009 to 2024, states with legal medicinal marijuana have seen a $22,185 increase in home value over states where it remains illegal.
Furthermore, the report also noted that nine of the 10 states with the highest jump in home values have legalized cannabis. In comparison, nine of the 10 states with the lowest home value growth have not legalized recreational cannabis.
While it is unclear why this correlation exists, this is not the first study to examine the correlation between marijuana legalization and home value.
In 2023, another report had similar findings, although their scope was limited to just 2023, rather than this extensive period of 2009 to 2024. Even more, another prior analysis also found there was a correlation between home value increases and proximity to dispensaries.
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While this new report is consistent with previous correlational data on the benefits of cannabis legalization, several factors beyond cannabis legalization may contribute to the increase in home values, including schools nearby, crime rates, noise pollution, a lack of available housing, and others.
However, the data shows that legalization could lead to higher home values, which is an important consideration even for those who do not use cannabis.