Home values in states with adult-use cannabis laws have outpaced home values in other states by nearly $49,000 from 2014 to 2023, according to new research from Real Estate Witch. The typical home in a state with legalized cannabis has seen its value appreciate by $185,075 since 2014, compared to $136,092 in states that have not enacted the reforms.
Cities with adult-use dispensaries also report $67,359 higher increases in home values than cities where cannabis is legalized but dispensaries are not available.
The study also found that the typical home in an adult-use cannabis state is worth $417,625 – 41% more than in states that do not permit adult cannabis use ($295,338).
Medical cannabis is also associated with higher increases in home values as states with medical cannabis access have seen home values increase $29,289 more than states without medical cannabis since 2014. States with medical cannabis have also seen home values increase $166,609 since 2014, compared to $137,320 in other states.
Today, the typical home in a state with medical cannabis access is worth 21% more than a home in a state without, the report says. Real Estate Witch found that among the top 10 states with the highest growth in home values, Idaho is the only one that has no form of legal cannabis.