Marijuana and Real Estate: A Budding Issue

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Highlights

Residential Properties

• Nearly one-fifth of respondents where marijuana was legal the longest had seen a change in residential property values near dispensaries (one-quarter in 2021).
• 27% of those in states that legalized both medical and recreational marijuana prior to 2018 have seen addendums added to leases that restrict growing on properties (down from 44% in 2021), compared to 16 percent in other states.
• In states where recreational marijuana is legal, 56% to 65% of residential property managers have seen addendums added to leases which restrict smoking on properties (59% to 76% in 2021).

Commercial Properties

• 18% of commercial members in states that legalized recreational marijuana in the past five years reported an increase in property purchasing over leasing in the past year (29% in 2021), compared to 14%in states that legalized more than five years ago (20% in 2021), and 4% of those in states where only medical marijuana is legal (21% in 2021).
• In states where recreational marijuana has been legal the longest, 45% say commercial landlords are willing to take cash for rent (42% in 2021).