According to an analysis by a real-estate platform, from 2009 until 2024 the home value in America increased in more states that allow cannabis for recreational or medicinal use.
CleverOffers looked at the Zillow Home Value Index, among other sources, to see how home values changed in states that legalized cannabis compared with those that did not. The results were interesting.
- In states that currently allow marijuana for recreational use, home values have increased by $60327 (about 39%).
- In states that now allow medicinal marijuana, home values have increased by $22,185 (about 18%).
- Nine of the 10 most expensive states in the US have some type of cannabis legalization.
- Nine out of 10 states, which have the lowest growth in home values since 2009, do not allow cannabis recreational use.
Why?
Clever Offers claims that legalization plays a role. As an example, in states that have legalized cannabis, millions are reinvested as tax revenues into programs which make the neighborhoods and homebuyers more valuable.
In 2024, 23 states that tax recreational and medicinal marijuana will have collected over $4 billion dollars in tax revenue. The majority of this tax revenue was generated by recreational marijuana sales. California was the state that collected the largest amount of tax revenue. It amounted to more than one billion dollars. California also saw the greatest increase in the value of its homes, which increased by $492.520 between 2009 and 2024.
Cannabis legalization is causing a shift in the perception of housing markets and stereotypes. states the analysis. Cannabis isn’t hurting home values. They are growing, and those states which haven’t legalized cannabis could be missing thousands of dollars in home value appreciation.
CleverOffers’ analysis shares some similarities with that of a 2022 study The MIT program is similar to the MIT programs, with a few important differences.
In the analysis of state-level data, home values decreased in the year immediately following medical marijuana legalization. However, this could be because spillover trends. Housing prices are higher for recreational marijuana.
“In the Years Following Legalization”