Marijuana and Real Estate: A Budding Issue
The real estate industry and its professionals are constantly adapting to not only national and local trends, but also to local laws and regulations. With constant changes in the legal status of both medical and recreational marijuana, there undoubtedly have been direct changes to real estate from these laws and related businesses. In this report, we examined the similarities and differences of effects from marijuana legality on various aspects of real estate, as well as any shifts from the last time the study was conducted in 2020.
Residential Real Estate
- More than one third of respondents in states where marijuana was legal the longest and nearly one quarter in states where marijuana has been more recently legalized believed inventory was tight for multiple reasons, including as a result of the marijuana industry.
- One quarter of respondents where marijuana was legal the longest had seen a change in residential property values near dispensaries.
- Respondents in states where recreational marijuana is legal more often reported that homeowner associations often had rules and restrictions against smoking and growing in common areas, and growing in exposed areas.
Commercial Real Estate
- In states where prescription and recreational marijuana use is legal, 35% to 36% of members had seen an increased demand in warehouses, 23% in storefronts, and 18% to 28% in land.
- States where medical and recreational marijuana have been legalized in the past four years have seen the most increases in demand for commercial properties from marijuana related businesses since the onset of COVID 19.
- 11% to 13% of members had seen an increase and 5% to 14% had seen a decrease in commercial property values near dispensaries.