The establishment of licensed cannabis businesses is associated with increased home values, according to a study published by Rutgers University and funded by the New Jersey State Policy Lab.
Researchers reported that municipalities which licensed marijuana establishments experienced a nearly two percent increase in home sale prices as compared to properties in towns that banned them.
Although they cautioned that they could not be certain that the allowance of cannabis retailers directly caused the spike in local housing process, authors acknowledged that “allowing cannabis-related businesses does not negatively impact home sales prices.”
They concluded, “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.”
The study’s findings are consistent with those of several others which have reported increased home values for properties located in close proximity to licensed cannabis establishments, as well as in states that have enacted legalization. Separate data has also reported that local jurisdictions which permit licensed marijuana operations experience job growth at higher rates than do localities that prohibit them.
“It’s time for local officials to put an end to the NIMBYism 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.”
Full text of the study, “Determinants and Impacts of Allowing Cannabis Businesses: Evidence from New Jersey Municipalities,” is available online. Additional information is available from NORML’s fact-sheet, ‘Societal Impacts of Cannabis Dispensaries/Retailers.’