New Study Finds Home Values Are 41% Higher in States with Legal Recreational Cannabis

The typical home in a state where recreational cannabis is legal is worth $417,625 — 41% higher than non-recreational states ($295,338).

ST. LOUIS, Nov. 1, 2023 /PRNewswire/ -- Home values in states with recreational cannabis have outpaced home values in other states by $48,983 over the past decade, according to new research from Real Estate Witch, an online publication owned by Clever Real Estate that connects readers with expert real estate advice, and Leafly, a leading online cannabis discovery marketplace and resource for cannabis consumers.

Recreational cannabis is currently legal in 23 states and Washington, D.C. Property values in those states have risen by $185,075 since 2014, compared to $136,092 in states without recreational cannabis. Typical home values in a recreational state are $417,625, 41% higher than in non-recreational states ($295,338).

Of the 10 states with the largest increases in home values, seven have legalized recreational cannabis. Meanwhile, of the 10 states with the smallest increases in home values, nine have not legalized recreational cannabis. 

Further, states with medicinal cannabis have seen home values climb $166,609 since 2014 — $29,289 more than states without medicinal cannabis ($137,320). The typical home in medicinal states is worth $337,360, compared to $281,343 in other states.

Cities in recreational states with dispensaries have seen home values grow $168,292 since 2014, $67,359 more than the $100,933 growth in cities with legal recreational cannabis but no dispensaries.

"This report stands as a testament to what insiders in the cannabis community have long known to be true: The presence of legal cannabis in cities and states does not diminish property values. In fact, it's quite the opposite," said Josh deBerge, vice president of brand & communications for Leafly. "Regulated cannabis offers a slew of economic benefits to local communities, and that is something this report makes quite clear."

The 23 states and Washington, D.C., that have legalized recreational cannabis are projected to average over $1 billion in overall cannabis revenue in 2023 — totaling just under $25 billion.

In 2022, the 12 states that reported a full year of cannabis tax revenue averaged an additional $307 million in tax revenue per state, totaling $3.7 billion. California alone earned an additional $1.1 billion in tax revenue from cannabis in 2022.

Read the full report at: https://www.realestatewitch.com/cannabis-real-estate-2023

About Real Estate Witch

Real Estate Witch is a web property of Clever Real Estate, an online platform that connects home buyers and sellers with top-rated agents at a discounted rate.

Please contact Nicole Lehman at [email protected] to be connected with a researcher with any questions or for an interview.

About Leafly

Leafly helps millions of people discover cannabis each year. Leafly's powerful tools help shoppers make informed purchasing decisions and empower cannabis businesses to attract and retain loyal customers through advertising and technology services. Learn more at Leafly.com or download the Leafly mobile app through Apple's App Store or Google Play.

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Nicole Lehman
PR Strategist
Clever Real Estate
724-719-0406

SOURCE Real Estate Witch