There are burgeoning housing implications of the legalization of marijuana, from demand for dispensaries to an influence on property values, according to a new report.
According to approximately 10 percent of REALTORS®, in areas where there’s a dispensary, homes have increased in value, a National Association of REALTORS® (NAR) survey uncovered. More than 75 percent of REALTORS®, however, have not seen any shift in values, and 12-14 percent have seen a decline.
On the commercial side, the impact of the legalization of marijuana seems to be significant. According to the survey, close to 25 percent of commercial REALTORS® have seen a boost near growing land, and 20 percent have seen an increase on properties in proximity to a dispensary.
“Members in states where marijuana has been legalized to some extent have been asking us to conduct this kind of research because it is directly affecting their business,” said Jessica Lautz, director of Behavioral and Demographic Trends at NAR, during the 2018 REALTORS® Conference & Expo, where the findings were shared.
“Whether it is influencing property values, the number of all-cash purchases or demand for various types of commercial properties, it is clear that this billion-dollar industry is making an impact,” Lautz said.
Importantly, agents with grow house listings have had no problem selling them, according to the survey—both where marijuana has been legalized for medical purposes, and where it has been legalized for medical and recreational use. Of those REALTORS®, 90 percent had no issues with the title.
Still, there’s stigma.
“While less than 10 percent of members indicated there is an increase in actual crime around dispensaries, 16-18 percent indicated that there is an increase in the perception of crime,” said Lautz.
Continuing coverage of the REALTORS® Conference & Expo to come.
For more information, please visit www.nar.realtor.
Suzanne De Vita is RISMedia’s online news editor. Email her your real estate news ideas at sdevita@rismedia.com. For the latest real estate news and trends, bookmark RISMedia.com.
