A new study confirms previous research on the real estate benefits of legal cannabis
The legalization of marijuana has undoubtedly brought great benefits and advantages to a large number of people involved, either directly or indirectly. As an example of this, a new study showed that this growing cannabis movement and multiple dispensaries across the country increase the value of homeownership.
To come up with these results, Clever Real Estate’s research was based on data from Zillow, the US Census, and other relevant sources. As a conclusion, it was able to highlight that over a two-year period from 2017 to 2019, “home values increased $6,338 more in states where marijuana is legal in some form compared to states that have not legalized marijuana.”
One of the main reasons for this upward movement in homeownership heat is because legalization and regulation of cannabis lead to tax revenue for states. That kind of money translates into “new investments in things like utilities and infrastructure,” which makes the area more exclusive because of what surrounds it. The more investment a specific area has, the more prestige and value living in that area will have, and this is an explanation that makes a lot of sense when it comes to understanding why.
According to the study, home values increase by nearly $500 for every $1 million in additional tax revenue collected from marijuana sales. One clear example that could be brought to the table is Illinois. In 2020, The Prairie State was able to sell nearly $670 million worth of cannabis getting a total of $205.4 million in tax revenue. Much of that revenue went to different causes, including organizations working to reduce street violence. Should organizations like these succeed, reducing violence in a given community would make it easier to increase property values.