A primary motivation for legalizing cannabis is the positive economic impact that this industry has on job creation, business development, community reinvestment, and tax revenue generation. While media coverage often highlights the eye-popping multi-million dollar cannabis tax revenue figures coming out of states like Washington and Oregon, a growing body of research is uncovering another positive impact of legalization: rising property values. According to a recent study published in Economic Inquiry, a Colorado city or town’s decision to permit regulated marijuana businesses increased “housing values by approximately 6%, or $15,600 per property.” Rising property values benefit a broad range of stakeholders–from homeowners who experience a net increase in their wealth to local governments and school districts that rely upon property tax revenue to fund public services.
Source: Cheng, Cheng, et al. “The Effect Of Legalizing Retail Marijuana On Housing Values: Evidence From Colorado.” Economic Inquiry, vol. 56, no. 3, 2018, pp. 1585–1601., doi:10.1111/ecin.12556.