CANNABIS CULTURE – California’s legal Cannabis industry is destined to be a watershed moment in the global movement to legalize cannabis. The state still needs to smooth out a few kinks with regulations, but in general, lawmakers expect a positive outcome similar that experienced in other now legal jurisdictions. Still, no one really knows just yet how much bringing billion-dollar industry out of the shadows will change communities, especially in Los Angeles.
While some observers have predicted casual fast food restaurant profits around the city will skyrocket, due to a recent study conducted by cannabis research company Green Market Report. Most experts have hesitated when it comes to guessing what may happen in the real estate market.
According to a study from the realtor.com data team, legalizing pot in your state may have a positive impact on your city’s real estate — raising home prices for buyers, owners, and sellers in select districts. The website collected residential real estate data from five recreational marijuana states, noticing a trend between pot businesses and a boost in home prices, surges in housing demand, and (perhaps surprisingly) lower crime-rates.
It’s clear why thriving marijuana dispensaries may increase the price of real estate property located nearby. With new above-board industries beginning to take shape, and new amenities popping up around them, many people are attracted to the area due to potential employment and a new lifestyle opportunity.
The study showed that localized housing prices increased in all of the states that legalized marijuana. After recreational cannabis became legal in Colorado, single-family homes surrounding pot-focused businesses saw an increase in their property value of over eight percent, compared to homes situated further away.
From a statewide perspective, Colorado’s overall population not only increased by two percent, its real estate market has also exponentially increased since recreational pot was legalized.
The data also shines a light on the increased demand for housing. A strong potential for economic growth and optimistic possibilities surrounding the untapped industry has led a new wave of consumers and entrepreneurs to legalized marijuana states. Ever since marijuana was legalized in Denver in 2014, the rate of demand has slowly caught up to the city’s housing supply. Before the new law was implemented, Denver kept an average of 24,000 listings. However, recent data has shown that the average amount of listing is now around 4,000.
Researchers have warned that these statistics may vary depending on the city. Los Angeles is already notorious for its housing shortage, so an increase in property value and demand might not be the best solution for its current crisis.
Layne Gerbig is a PR specialist with neighborhoods.com a leading resource for anyone looking to monitor the trends at-play in real-estate.