Good news homeowners! Is your casa located within a mile of a dispensary? Your property values might be higher than they were when you moved in. It turns out that your home could end up being worth a lot more than you originally paid, according to a new report.
The report, which was conducted by California State University (CSU) and the University of Wisconsin, looked at home prices in Denver, CO from 2013 to 2014. The report showed that homes that were located near dispensaries had higher property values than homes that were not. Results showed that homes that were located between 0.1 and 0.25 miles away were worth 8 percent more than homes that were located further away. Eight percent doesn’t sound like a lot, that is until you consider that this is on average an extra 27K.
The official report states, “Our results indicate that retail conversion has a large positive impact on neighboring property values after controlling for property attributes and neighborhood characteristics,” according to an article in the Colorado Springs Independent. Retail conversion is just a fancy marketing term for when dispensaries that were once strictly medical convert to recreational sales. When Colorado first went recreational only medicinal license holders were allowed to conduct recreational sales. As a result, most of these dispensaries went through a “conversion” from medical to recreational sales.
The reasons for the higher property values were not explicitly investigated by the researchers; they were looking for effect, rather than causation. There are a couple of possibilities for the causes, however. The most obvious would be increased job opportunities. It’s no secret that the legal cannabis industry has been a major economic boon to the states that have legalized recreational cannabis. Colorado’s industry alone is worth a couple billion. One would imagine that housing demands around dispensaries would be a bit higher. If you work in one of these dispensaries, you probably would prefer living closer to work. Even if you don’t work at one, whom among us would not want our favorite dispensary close by?
It’s important to note that this is not the most scientific study ever conducted. The scope is pretty narrow, which inherently biases the data. Results may vary in other areas and there are other factors to take in. Still, it would be interesting to see if the results are the same in other areas like Seattle.