Florida Real Estate News –
Real estate economists: Weed shops boost home values
DENVER – With Palm Beach County’s first medical marijuana dispensaries poised to open soon in Lake Worth, here’s a bit of heartening news for nearby homeowners: Pot shops are good for home values.
According to a study published in the academic journal Real Estate Economics, single-family homes within 0.1 mile of Denver’s 103 pot shops saw an increase in value of 8.4 percent compared to those located a bit farther – between 0.1 miles and 0.25 miles – from dispensaries. That increase in property value was estimated to be $27,000 for a typical house.
The study, conducted by researchers from the University of Wisconsin, the University of Georgia and California State University, looked at appreciation since Jan. 1, 2014, when Colorado’s recreational cannabis law took effect.
“The presence of retail marijuana establishments clearly had a short-term positive impact on nearby properties in Denver,” says Moussa Diop, an assistant professor of real estate at Wisconsin. “This suggests that in addition to the sales and business taxes generated from the retail marijuana industry, municipalities may experience an increase in property taxes. It’s an important piece of the puzzle as more and more voters and policy-makers look for evidence about the effects of legalizing recreational marijuana, as the issue is taken up by state legislatures across the country.”
Explaining why properties nears pot shops appreciated so strongly “remains a puzzle that we leave to future research,” the authors write.
As of early September, 17 medical marijuana dispensaries had opened in Florida, including locations in Miami, Jacksonville and Tallahassee.
As Palm Beach County’s first medical marijuana dispensary is poised to open, a study brings good news for owners: Weed shops boost nearby property values.