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The Impact of Legal Cannabis on Property Values

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Three words: location, location, and location. Those are the three most important factors to look for when investing in real estate. Of course, it helps a great deal when the location of your investment properties happen to be in the same place that recently legalized the recreational use of a substance that millions of people are enthusiastic about. It certainly doesn’t take a millionaire real estate mogul to figure that fact out. For almost three years now, the housing market in Colorado and in Denver especially, has been booming.

“There has been a huge bump in real estate prices due to the legalization of marijuana,” James Paine, managing partner at West Realty Advisors, told CNN Money. “It’s massively pushed up raw land and industry prices.”

In 2014, Colorado legal cannabis sales totaled $700 million. At the end of Q4 2016, the state expects to collect over $100 million in cannabis taxes by 2016.

CNN Money goes on to report that back in March of 2015, Denver saw a 10% increase of housing prices; its second largest ever, trailing only San Francisco for the highest in the nation.

In the initial stages of the state’s’ legalization, the legal cannabis business was a huge boom for Denver real estate and housing prices were relatively affordable. Now, unfortunately, skyrocketing housing prices in Denver, is potentially transforming the city into one that only the uber-wealthy can afford.

The average home price in Denver is up to $350,500, making Denver a truly seller’s market. This is ripe for hedge funds and investors to take advantage of, but everyday citizens looking to move somewhere to have access to medicine for epileptic children, for instance, might be better off moving to a smaller mountain Colorado town or suburb. Despite the potentially harmful news for everyday working folks enthusiastic about legal cannabis — since the rise in housing prices, Denver vacancy rates and unemployment are way down.  

Regardless of Colorado state law, we all know that cannabis is still illegal at the federal level. This fact forces some landlords and property managers to keep cannabis use out of their investment properties. Using cannabis in a rental property may result in violations in loan agreements or other problems with insurance carriers. Of course, landlords and property owners have the final say on what goes on inside their property, and some of have decided to ban the use of the plant altogether.

Some savvy entrepreneurs are setting up “Bud and Breakfasts” locations, however, using Airbnb to attract cannabis tourists to stay at their properties. Stay tuned to The Marijuana Times as we explore the interesting sector of the legal cannabis industry that is Bud and Breakfast locations.

2 COMMENTS

  1. Fact: there is only certain types of people who want to smoke pot, legal or illegally. The rest of the population won’t smoke pot legally or illegally. Fact: Most potheads don’t do hard drugs and most hard drug users don’t smoke pot because pot forces your brain to face realities otherwise not faced. Hard drug users hate smoking pot and having to face the reality of what is happening to their lives. Fact: Economies improve with the legalization of pot because all the money that went to dope dealers will then be going into the economy through taxes. If one grows their own pot the savings they derive will go into buying things they need like cars, furniture, clothes, food and much more which will create jobs and improve the economy, Fact legalization will cut the cost of government in many ways as courts, jails and police time will no longer be needed to deal with pot. Fact: Pot is a lot less harmful than alcohol, cigarettes and overeating which cause much harm in many ways to all of us through health care cost and other cost. Fact: Pot makes you drive more cautious thus lessening accidents unlike alcohol which is legal. Fact: The Straights legalized alcohol and not pot because many love to drink but can’t cope with smoking pot because they will see how ridiculous their way of thinking is and want to control the minds of people and they know potheads can’t be mind controlled by them! Fact: Pot has many benefits such as relieving disabling illnesses by certain children and adults; helps nausea and lack of appetite due to cancer, stomach problems and other body illnesses, Fact; pot helps people who have a hard time sleeping to get sleep. Fact; when animals get sick from certain illnesses they eat pot in the wild because they know something in pot makes them feel better. Fact; pot helps greatly with depression because after feeling good from smoking pot one doesn’t feel so bad about whatever makes them depressed. Fact; the medical community and drug companies don’t want pot legalized because pot will legalization will mean less customers for them which means they will lose money when pot is made legal. Fact; Many don’t want pot to be legal because they say some people end up in the hospital from smoking pot but those people are experiencing a strong physical rush from smoking HYDRO pot for the first time in a long time which causes a very strong high that doesn’t happen again when they smoke it again. Just like heroin addicts experience a better high the first time they do heroin the body gets higher from the first time one smokes pot be it the first time or after not smoking for a while. Instead of telling people to take only two puffs of smoke from pot the first time they smoke so that they won’t experience the intense high that first time smokers get thus saving lots of medical care money and worry the straights just say nothing because they know nothing about pot! Also how can you get someone to understand something that they have never tried! Fact; Politicians are very very slow to legalize pot because many of those that oppose pot like doctors, drug companies, police, religious people and others give monetary contributions to politicians who feel compelled to promote attitudes of contributors! Fact; President Obama has shafted the pot heads of America because he has unleashed the terrorist watching police upon the illegal drug trafficking in America which resulted in the worst times in American history for potheads because these police have successfully shut down most of the pot smuggling in America because pot is so big of a drug to transport compared to other drugs like heroin which now is easier to get because drug smugglers can transfer these smaller drugs. Most of the many different kinds of pot can’t even be gotten anymore since Obama became president. Also potheads wonder why the Democratic party and Obama hasn’t done anything to address the unfairness of pot laws in the last seven years since Obama was president and even before that! Talk about being used by politicians! Obama says he wants to see how states address pot before he acts but Obama will be out of office before the issues are resolved about pot. In fact Obama alone is standing in the way of pot being turned into a Class 2 drug instead of a Class 1 drug which would let the medical community investigate pot more freely. Potheads are the last discriminated class of people in America to have their issues addressed. Are YOU going to put an end to this discrimination in any way shape of form! Improve your economy by legalizing pot or pay the consequences for not doing so! Facts count!

  2. I almost wish there was a way that people who need marijuana for it’s medicinal properties could get priority housing. I’m sure having to uproot their lives is hard, but with a more expensive housing market that doesn’t make things anything easier. Thanks for sharing.

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