'Voters in four states last year approved the recreational use of marijuana. That is likely to launch a land rush there for warehouses and retail properties.
Similar measures in other states have sparked heated competition for these types of real estate.
Owners have been able to charge as much as three times market rates when selling or renting to businesses involved in the cultivation, distribution, processing or sale of cannabis, according to brokers, landlords and cannabis industry executives.
Landlords can charge this pot premium because properties typically have to meet a range of local restrictions to qualify, such as being a certain distance from churches or schools.' - Wall Street Journal
'Americans would rather live in states where marijuana is legal than in those that continue to criminalize cannabis consumers. That’s according to a new survey published on Monday by real estate company Redfin.
Among those who recently moved to a new metro area, 46 percent said they prefer to reside somewhere marijuana is “fully legal,” compared to just 22 percent who want to live in a place with prohibition still in effect.' - Marijuana Moment
Similar measures in other states have sparked heated competition for these types of real estate.
Owners have been able to charge as much as three times market rates when selling or renting to businesses involved in the cultivation, distribution, processing or sale of cannabis, according to brokers, landlords and cannabis industry executives.
Landlords can charge this pot premium because properties typically have to meet a range of local restrictions to qualify, such as being a certain distance from churches or schools.' - Wall Street Journal
'Americans would rather live in states where marijuana is legal than in those that continue to criminalize cannabis consumers. That’s according to a new survey published on Monday by real estate company Redfin.
Among those who recently moved to a new metro area, 46 percent said they prefer to reside somewhere marijuana is “fully legal,” compared to just 22 percent who want to live in a place with prohibition still in effect.' - Marijuana Moment
To many people, a neighborhood where cannabis is sold is a bad neighborhood. In a "decent" neighborhood, homeowners are known to vacate tenants if found smoking cannabis. This is the state of affairs in a world where cannabis is prohibited and anti-cannabis propaganda has been effectively spread worldwide by cannabis opposition. Even in the 23 US states, as of April 2021, where cannabis has been legalized for recreational use, the majority of the city and town municipalities continue to ban cannabis retail, and oppose even home delivery of the herb. In some places, local municipalities and town councils demand high fees and taxation rates to grant permission for a cannabis retail outlet or dispensary to operate within their limits. In addition, there are usually so many conditions to be met for the establishment of a cannabis retail outlet, such as distance from schools, religious places, etc that finding a location that is ideal is often very difficult. Then there are the so-called conservative citizen groups, comprising mainly of the ruling or upper classes of the area, who see cannabis as a drug of the working classes, the poor, and of criminals. They fear that cannabis in a neighborhood will degrade that neighborhood. All in all, in the current context, even in states where cannabis has been legalized for recreational use by an overwhelming public mandate, the general impression is that cannabis businesses are generally not good for the real estate industry.
However, as the needle of public opinion starts to swing in favor of cannabis, reports are emerging from the US states with legalized recreational cannabis, showing that having a cannabis business in the neighborhood is not as bad as thought. Along with reports of no significant increase in crime, and no evidence of increase in rates of youth consumption, are reports that say that having a cannabis business in a neighborhood actually increases the real estate value of the neighborhood. More and more people are now willing to pay extra to stay in a neighborhood with access to cannabis. This is raising the price of real estate and places with cannabis businesses are starting to be recognized as high value locations rather than places to be shunned.
Cannabis businesses, especially retail outlets, are comparable with the swankiest high end retail outlets that any business has to offer. Coupled with social consumption areas, such as those in Amsterdam that are key contributors to the city's dynamism, these retail outlets have the potential to raise the livability standards of any locality. Cannabis events, food, beverages, wellness and tourism are other factors adding to the vibrancy and attractiveness of a place.
However, as the needle of public opinion starts to swing in favor of cannabis, reports are emerging from the US states with legalized recreational cannabis, showing that having a cannabis business in the neighborhood is not as bad as thought. Along with reports of no significant increase in crime, and no evidence of increase in rates of youth consumption, are reports that say that having a cannabis business in a neighborhood actually increases the real estate value of the neighborhood. More and more people are now willing to pay extra to stay in a neighborhood with access to cannabis. This is raising the price of real estate and places with cannabis businesses are starting to be recognized as high value locations rather than places to be shunned.
Cannabis businesses, especially retail outlets, are comparable with the swankiest high end retail outlets that any business has to offer. Coupled with social consumption areas, such as those in Amsterdam that are key contributors to the city's dynamism, these retail outlets have the potential to raise the livability standards of any locality. Cannabis events, food, beverages, wellness and tourism are other factors adding to the vibrancy and attractiveness of a place.
In almost all US states with legal recreational cannabis, cannabis was declared an essential service during the Covid pandemic of 2020, along with food, medicine, alcohol, etc. This clearly shows that cannabis has emerged from being rejected as a dangerous drug to being considered one of the most essentials in society. This gradual change in perception shows an increasing return to normalcy.
Considering that the image of the cannabis consumer is slowly changing from that of a social outcast to a high flying member of society, and that 70% of Americans are in favor of cannabis legalization, as of April 2023, the cannabis demographic is now a key one. Being intolerant of cannabis is no more in good taste or good for real estate. Many cannabis consumers are well paid professionals, working in all walks of life, including in the cannabis industry. The elderly are the fastest growing age demographic taking up cannabis consumption. The increased awareness that the cannabis consumer is less likely to be violent as compared to an alcohol consumer, and less likely to be involved in crime as compared to a synthetic drug user, is changing the perception of landlords, as is the widespread usage and the purchasing power that the cannabis user holds.
Related articles
The following set of articles related to the subject are taken from various media. Words in italics are the thoughts of yours truly at the time of reading the article.Homes located near cannabis retailers are more likely than others to appreciate in value, according to an analysis provided by Tomo Real Estate.
Analysts assessed the relationship between cannabis retailers and home prices in three states: Colorado, Michigan, and Oregon. Researchers examined annual increases or decreases in median home prices in zip codes with a dispensary compared to median home price changes in the surrounding zip codes.
Researchers concluded that homes located in towns with dispensaries experienced, on average, an annual increase in home values of $4,400.
https://norml.org/news/2024/06/27/analysis-proximity-to-cannabis-retailers-associated-with-rising-home-values/
Analysts assessed the relationship between cannabis retailers and home prices in three states: Colorado, Michigan, and Oregon. Researchers examined annual increases or decreases in median home prices in zip codes with a dispensary compared to median home price changes in the surrounding zip codes.
Researchers concluded that homes located in towns with dispensaries experienced, on average, an annual increase in home values of $4,400.
https://norml.org/news/2024/06/27/analysis-proximity-to-cannabis-retailers-associated-with-rising-home-values/
'Americans would rather live in states where marijuana is legal than in those that continue to criminalize cannabis consumers. That’s according to a new survey published on Monday by real estate company Redfin.
Among those who recently moved to a new metro area, 46 percent said they prefer to reside somewhere marijuana is “fully legal,” compared to just 22 percent who want to live in a place with prohibition still in effect.'
https://www.marijuanamoment.net/americans-want-to-live-where-marijuana-is-legal-real-estate-survey-finds/
Among those who recently moved to a new metro area, 46 percent said they prefer to reside somewhere marijuana is “fully legal,” compared to just 22 percent who want to live in a place with prohibition still in effect.'
https://www.marijuanamoment.net/americans-want-to-live-where-marijuana-is-legal-real-estate-survey-finds/
'Marijuana businesses entering New Jersey are facing a sizzling market for retail and industrial cannabis real estate ahead of the launch of recreational sales, forcing them to search aggressively for appropriate sites in limited areas and pay premiums to secure them.'
https://mjbizdaily.com/challenges-abound-in-new-jerseys-hot-cannabis-real-estate-market/
https://mjbizdaily.com/challenges-abound-in-new-jerseys-hot-cannabis-real-estate-market/
'The Universe, as has been observed before, is an unsettlingly big place, a fact which for the sake of a quiet life most people tend to ignore.
Many would happily move to somewhere rather smaller of their own devising, and this is what most beings in fact do.
For instance, in one corner of the Eastern Galactic Arm lies the large forest planet Oglaroon, the entire 'intelligent' population of which lives permanently in one fairly small and crowded nut tree. In which tree they are born, live, fall in love, carve tiny speculative articles in the bark on the meaning of life, the futility of death and the importance of birth control, fight a few extremely minor wars, and eventually die strapped to the underside of some of the less accessible outer branches.
In fact the only Oglaroonians who ever leave their tree are those who are hurled out of it for the heinous crime of wondering whether any of the other trees might be capable of supporting life at all, or indeed whether the other trees are anything other than illusions brought on by eating too many Oglanuts.
Exotic though this behaviour may seem, there is no life form in the Galaxy which is not in some way guilty of the same thing, which is why the Total Perspective Vortex is as horrific as it is.
For when you are put into the Vortex you are given just one momentary glimpse of the entire unimaginable infinity of creation, and somewhere in it a tiny little marker, a microscopic dot on a microscopic dot, which says, 'You are here.''
- The Hitchhiker's Guide to the Galaxy, The Complete Trilogy of Five, Douglas Adams
Many would happily move to somewhere rather smaller of their own devising, and this is what most beings in fact do.
For instance, in one corner of the Eastern Galactic Arm lies the large forest planet Oglaroon, the entire 'intelligent' population of which lives permanently in one fairly small and crowded nut tree. In which tree they are born, live, fall in love, carve tiny speculative articles in the bark on the meaning of life, the futility of death and the importance of birth control, fight a few extremely minor wars, and eventually die strapped to the underside of some of the less accessible outer branches.
In fact the only Oglaroonians who ever leave their tree are those who are hurled out of it for the heinous crime of wondering whether any of the other trees might be capable of supporting life at all, or indeed whether the other trees are anything other than illusions brought on by eating too many Oglanuts.
Exotic though this behaviour may seem, there is no life form in the Galaxy which is not in some way guilty of the same thing, which is why the Total Perspective Vortex is as horrific as it is.
For when you are put into the Vortex you are given just one momentary glimpse of the entire unimaginable infinity of creation, and somewhere in it a tiny little marker, a microscopic dot on a microscopic dot, which says, 'You are here.''
- The Hitchhiker's Guide to the Galaxy, The Complete Trilogy of Five, Douglas Adams
'The author added, “We found that cities with more dispensaries are positively correlated with higher home values, suggesting legalization boosts jobs and economic growth. … With each new dispensary a city adds, property values increase by $519.”
She concluded: “As more states legalize marijuana, there is strong evidence that legalization drives higher property values — particularly in areas that allow recreational marijuana and welcome retail dispensaries. … These investments can improve quality of life in communities across the nation while attracting tourism and new residents who drive real estate demand.”'
https://norml.org/blog/2021/07/13/analysis-marijuana-legalization-correlates-with-higher-home-values/
'“Marquee locations in the city are particularly hopeful that they will be able to site a cannabis dispensary at some point.”
While opening retail stores for purchase of recreational cannabis is still months away, it’s not too soon for entrepreneurs wanting to get into the industry to start looking for real estate – particularly given that the state could require business owners to secure real estate beforehand.
“It’s the No. 1 challenge of getting into the cannabis space,” said Ryan George, founder of 420 Property, a Sacramento, California-based cannabis real estate marketplace.'
https://mjbizdaily.com/cannabis-firms-developers-line-up-real-estate-ahead-of-new-yorks-adult-use-sales/
She concluded: “As more states legalize marijuana, there is strong evidence that legalization drives higher property values — particularly in areas that allow recreational marijuana and welcome retail dispensaries. … These investments can improve quality of life in communities across the nation while attracting tourism and new residents who drive real estate demand.”'
https://norml.org/blog/2021/07/13/analysis-marijuana-legalization-correlates-with-higher-home-values/
'“Marquee locations in the city are particularly hopeful that they will be able to site a cannabis dispensary at some point.”
While opening retail stores for purchase of recreational cannabis is still months away, it’s not too soon for entrepreneurs wanting to get into the industry to start looking for real estate – particularly given that the state could require business owners to secure real estate beforehand.
“It’s the No. 1 challenge of getting into the cannabis space,” said Ryan George, founder of 420 Property, a Sacramento, California-based cannabis real estate marketplace.'
https://mjbizdaily.com/cannabis-firms-developers-line-up-real-estate-ahead-of-new-yorks-adult-use-sales/
'Voters in four states last year approved the recreational use of marijuana. That is likely to launch a land rush there for warehouses and retail properties.
Similar measures in other states have sparked heated competition for these types of real estate.
Owners have been able to charge as much as three times market rates when selling or renting to businesses involved in the cultivation, distribution, processing or sale of cannabis, according to brokers, landlords and cannabis industry executives.
Landlords can charge this pot premium because properties typically have to meet a range of local restrictions to qualify, such as being a certain distance from churches or schools.'
https://www.wsj.com/articles/land-rush-is-on-in-four-states-that-approved-recreational-pot-last-year-11613480581
Similar measures in other states have sparked heated competition for these types of real estate.
Owners have been able to charge as much as three times market rates when selling or renting to businesses involved in the cultivation, distribution, processing or sale of cannabis, according to brokers, landlords and cannabis industry executives.
Landlords can charge this pot premium because properties typically have to meet a range of local restrictions to qualify, such as being a certain distance from churches or schools.'
https://www.wsj.com/articles/land-rush-is-on-in-four-states-that-approved-recreational-pot-last-year-11613480581
'Specifically, neighborhoods in Colorado and Washington saw a 7 percent price increase as marijuana retailers there opened shop, the study, which was published online this week by SSRN, found. “Considered together, this research suggests that there are second order benefits associated with marijuana legalization that policy makers and voters should be aware of when deciding the drug’s legal status.”
It’s not the first time researchers have looked into the effects of legalization on nearby home values. In 2018, researchers at Colorado State University found that home prices within a half mile of a retail cannabis store went up by 7.7 percent. A 2017 study, “Contact High: The External Effects of Retail Marijuana Establishments on House Prices,” found an 8 percent increase in the value single family residences that were “close to a retail conversion,” or store opening, compared to homes that were farther away. A 2016 analysis had similar findings, concluding that “legalization leads to an average 6% increase in housing values, indicating that the capitalized benefits outweigh the costs.”
https://www.marijuanamoment.net/legalizing-marijuana-increases-housing-prices-study-finds/
It’s not the first time researchers have looked into the effects of legalization on nearby home values. In 2018, researchers at Colorado State University found that home prices within a half mile of a retail cannabis store went up by 7.7 percent. A 2017 study, “Contact High: The External Effects of Retail Marijuana Establishments on House Prices,” found an 8 percent increase in the value single family residences that were “close to a retail conversion,” or store opening, compared to homes that were farther away. A 2016 analysis had similar findings, concluding that “legalization leads to an average 6% increase in housing values, indicating that the capitalized benefits outweigh the costs.”
https://www.marijuanamoment.net/legalizing-marijuana-increases-housing-prices-study-finds/
'One high-end real estate developer is going green ... building weed-friendly mansions for athletes, CEOs and celebs looking to harvest their own herb at home and take advantage of the plant's healing powers without ever having to get off the couch! '
http://www.tmz.com/2018/10/31/marijuana-mansions-los-angeles-smoke-athletes/
Here's why real estate developers should support legalization of ganja for recreational use..
'Colorado and Washington, the first states to legalize cannabis for recreational use, have both seen above average home values since opening their first dispensaries in 2014. Colorado homes have increased by 58%, and Washington home values have increased 57% in the five years since legal commercial sales began.
While there are tax benefits to legalizing marijuana medicinally, there was not a statistically significant increase in cities where only medicinal marijuana is legal.
So, why does recreational legalization and retail dispensaries lead to homing price boosts? According to a 2017 study from the University of Mississippi, recreational legalization “attracts more home buyers, including marijuana users as well as entrepreneurs and job seekers.” Businesses start to pop up, and job seekers flock to these cities, driving up the demand for housing and retail space.'
https://listwithclever.com/real-estate-blog/marijuana-housing-market-study/
'When new dispensaries opened within .25 miles, housing prices jumped 7.7 percent on average. There was still a 4.7 percent increase for homes located within .5 miles, but the effect “disappears entirely” for houses that are further than .5 miles from a new dispensary. The researchers also found that the effect was slightly more pronounced if the dispensary was the first to the area.
“Our results suggest that despite potential costs, legalization is capitalized as a net benefit in housing prices,” the researchers wrote.'
https://www.marijuanamoment.net/nearby-marijuana-shops-make-homes-and-rentals-more-valuable-studies-show/
'Lynne Patton, a U.S. Department of Housing and Urban Development (HUD) regional official who oversees New York and New Jersey, responded on Twitter to a story about John Flickner, a 78-year-old man who was recently evicted from his Niagara Falls, New York, apartment over his use of medical cannabis to treat chronic pain.
“State & federal law needs to catch up with medicinal marijuana usage & require private landlords to legally permit the same. Period,” Patton wrote. “Regardless, my team is already working with Mr. Flickner & a local grantee to place him in permanent housing again, as anyone else in his boat.”'
https://www.marijuanamoment.net/trump-official-wants-to-legally-permit-medical-marijuana-in-federally-subsidized-housing/
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