Home Values In States With Adult-Use Cannabis Significantly Outpace Home Values In Other States

Home values in jurisdictions with access to legal adult-use cannabis over
the past 15 years significantly outpaced home values in areas where
cannabis prohibition has remained in place, according to a recent analysis
by the real estate platform Clever Offers.

The report judges the average home prices across the U.S. from 2009 to
2024, and found that the average value of homes in states with adult-use
cannabis policies increased on average by $222,958 while the average value
of homes in states where cannabis has remained illegal increased by just
$162,631 — a $60,327 difference, the authors noted.

Additionally, of the 10 states that saw the biggest average increase in
home values, the only state without adult-use cannabis reforms on the list
was Idaho. Meanwhile, only one state (Illinois) among the 10 states with
the lowest increase in home values had enacted adult-use reforms.

“Cannabis isn’t dragging down home values,” the authors wrote. “It’s
helping them grow, and states that have yet to legalize it are missing out
on thousands in potential home value appreciation.”

“These data should mitigate concerns that the establishment of regulated
adult-use marijuana markets negatively impacts community safety and
prosperity. Rather, cannabis legalization is a proven economic driver.
Regulated markets create jobs, disrupt the underground marketplace, and
provide for new tax revenues that are redirected back into the local
community — resulting in greater economic growth and prosperity, in
addition to safer communities.” — NORML Deputy Director Paul Armentano, in
a statement

Additionally, the findings mirror the results of a 2023 report that found
home values in states with adult-use cannabis laws outpaced the home values
in other states by nearly $49,000 from 2014 to 2023.