Research conducted by Clever Real Estate has found that the presence of marijuana dispensaries and the legalization of marijuana helps grow home property values. The real estate service company used data from the U.S. Census and Zillow, as well as other sources for the study, which discovered that between 2017 and 2019, the value of homes increased by more than $6,000 in states where cannabis is legal in some form. This is in comparison to home values in states that haven’t legalized cannabis.
The increase in value may be driven by the tax revenues generated from the regulation and legalization of marijuana. The company found that this revenue was commonly invested into things such as infrastructure and public services, which significantly increased property value. According to the research, home values grew by nearly $500 for every $1 million in additional tax revenue generated from the sale of cannabis.
For instance, the state of Illinois sold nearly $670 million in marijuana and generated more than $200 million in tax revenue in 2020. This revenue was allocated to different causes, including the support of organizations that work to reduce street violence. Decreasing violence in communities is a good way to drive up property value. The study also discovered that states that legalized adult-use marijuana saw the highest increases in property value.
In its report, the company stated that in comparison with states where cannabis is limited to medicinal use or is still illegal, property values in states where recreational cannabis is legal rose by roughly $17,000 in the period between April 2017 and April 2021. It added that in states where legal sales are yet to begin but legalization has been enacted, property values are expected to rise by an average of $61,000.
The company notes that the presence of marijuana dispensaries seems to correspond to the increase in home property value, with findings showing that home values grew by more than $22,000 more in regions with recreational dispensaries. An analysis conducted by economists from the University of Oklahoma in 2020 also discovered that states that legalized cannabis saw increments in housing prices, with retail outlets opening for business driving this up further.
The researchers noted that this showed that the existence of dispensaries, coupled with the benefits of additional tax revenue drove the increments in price, arguing that the cannabis dispensaries were viewed as commercial amenities that the general public deemed to be valuable and/or important.
Furthermore, companies that sell cannabinoid products, such as The Alkaline Water Company Inc. (NASDAQ: WTER) (CSE: WTER), employ lots of people — and that alone creates more demand for homes, therefore hiking property values as those employees seek to buy houses in the vicinity.
NOTE TO INVESTORS: The latest news and updates relating to The Alkaline Water Company Inc. (NASDAQ: WTER) (CSE: WTER) are available in the company’s newsroom at http://cnw.fm/WTER
CNW420 spotlights the latest developments in the rapidly evolving cannabis industry through the release of two informative articles each business day. Our concise, informative content serves as a gateway for investors interested in the legalized cannabis sector and provides updates on how regulatory developments may impact financial markets. Articles are released each business day at 4:20 a.m. and 4:20 p.m. Eastern – our tribute to the time synonymous with cannabis culture. If marijuana and the burgeoning industry surrounding it are on your radar, CNW420 is for you! Check back daily to stay up-to-date on the latest milestones in the fast -changing world of cannabis.
To receive instant SMS alerts, text CANNABIS to 21000 (U.S. Mobile Phones Only)
For more information please visit https://www.CNW420.com
Do you have questions or are you interested in working with CNW420? Ask our Editor
CNW420 is part of the InvestorBrandNetwork.