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Legal cannabis can raise the roof on home prices

California legalized medical cannabis in 1996, and voters approved recreational use in 2016. Above, a woman peruses Medmen products in West Hollywood in 2017. (Kent Nishimura / Los Angeles Times)

The societal ramifications of state-legalized marijuana — a $10.4-billion industry — are being hashed out, study by study. And home values are one of the effects under scrutiny.

The link between real estate prices and weed might not be readily apparent, until one considers the en vogue vibe of licensed retail pot shops. Some are so slickly upscale-minimalist they sell branded yoga mats and Obama Kush, a Cannabis indica strain that “channels the president’s famous message of ‘change’ as it invigorates and inspires.”

Your favored budtender can set you up, and she might even offer hope: Lucrative legal weed does indeed seem to bake premium bucks into the worth of your home.

The most thorough study found that legalizing retail marijuana in Colorado increased housing values by about 6%, or $15,600 a property. Among all the factors contributing to home price increases, that accounted for about 27% of overall appreciation in municipalities that adopted legal cannabis from 2010 to 2015, according to the University of Mississippi study, published last year in Economic Inquiry.

“Our result is quite robust,” the study’s coauthor, Cheng Cheng, said in a written response to questions. “This result remains robust when we account for the impact of other common housing value determinants (e.g., housing characteristics and demographics) and of the regulation of medical marijuana.”

To Read The Rest Of This Article By R. Daniel Foster on Los Angeles Times

Published: May 24, 2019

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