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Study Suggests Home Prices are Higher in States with Legal Weed

Of the 10 states with the largest increases in home values, seven have legalized recreational cannabis.

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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, an 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 β€” $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.

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 β€” 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.

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