Rutgers University researchers found a 2% increase in home prices where municipalities have allowed licensed cannabis businesses to operate compared to areas that instituted bans on the industry.
Study: Allowing Legal Cannabis Companies May Increase Local Home Prices
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A new study suggests that allowing licensed cannabis businesses in a town or city increases home values, NORML reports. The study was conducted by Rutgers University with funding help from the New Jersey State Policy Lab.
Researchers found a nearly 2% bump in home prices in cities that embraced legal cannabis compared to cities that adopted cannabis bands. They said it was unclear if there was a direct correlation between higher home prices and cannabis establishments but they were ultimately confident that “allowing cannabis-related businesses does not negatively impact home sales prices.”
“In terms of policy recommendations, our results suggest state and local policymakers can be cautiously optimistic about the short-run impacts of allowing cannabis-related businesses in their jurisdictions.” — Study authors, via the NORML report
The report also notes that other studies have returned similar results, while even others suggest that allowing cannabis businesses in a community leads to faster job creation rates than those without cannabis businesses.
“It’s time for local officials to put an end to the NIMBYism [Not In My Backyard] and unwarranted fears surrounding the establishment of licensed marijuana retailers,” NORML’s Deputy Director Paul Armentano said. “Cannabis is here and here to stay. Municipalities need to embrace this reality and provide the necessary oversight in order to hold these businesses accountable and to make this marketplace safe, transparent and profitable for the community.”
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