Research from Clever Real Estate reveals that states with legalized recreational cannabis have witnessed home values soar by an average of $60,327 more than their non-legal counterparts since 2009.
As the housing market continues to shift, the data indicates a compelling correlation between cannabis legalization and significant increases in median home values.
Legalizing recreational cannabis can bring a variety of economic benefits, including business growth and increased consumer spending.
One of the most significant effects is the substantial rise in home values, which tends to exceed the growth seen in states where recreational cannabis remains prohibited.
In states where recreational cannabis is legal, the average home value reached $447,635 in 2024, up from $224,677 in 2009, an increase of $222,958 over 15 years.
In contrast, in states where recreational cannabis is illegal, home values grew by only $162,631 during the same timeframe, rising from $158,273 in 2009 to $320,904 in 2024.
Of the 10 states with the highest jump in home values since 2009, nine of them — all except Idaho — have some form of legalized cannabis.
California tops the list with a nearly $500,000 increase in home values. Colorado ranks fifth with a $336,774 increase.
Top 10
- California ($492,520 increase in home values since 2009)
- Hawaii ($446,247)
- Washington ($342,414)
- Massachusetts ($340,127)
- Colorado ($336,774)
- Utah ($320,372)
- Idaho ($300,309)
- Nevada ($296,493)
- Oregon ($275,826)
- New Hampshire ($273,238)
Colorado and Washington were the first states to legalize recreational cannabis, while Ohio, Minnesota, and Delaware are the latest to do so.
If those three states had legalized cannabis at the same time as Colorado and Washington, Clever estimates home values could have increased by $257,431 since then.
Since Washington and Colorado legalized recreational cannabis in 2012, the market has flourished. Now, 24 states and the District of Columbia have followed suit.
Bottom 10
Among the 10 states with the most minor increases in home values, nine have not legalized recreational cannabis.
- Louisiana ($46,820)
- West Virginia ($67,214)
- Mississippi ($69,036)
- Arkansas ($94,646)
- Oklahoma ($100,226)
- Iowa ($102,538)
- Alabama ($103,466)
- Illinois ($103,955)
- Kentucky ($106,230)
- North Dakota ($108,117)
Louisiana, where cannabis is only legal for medical use, experienced the smallest gain, with home values rising by just $46,820 since 2009.
Illinois is the only state in the bottom ten that has legalized recreational marijuana. High property taxes are causing both new and existing residents to leave, limiting home appreciation, even though cannabis legalization usually brings an economic boost.
The news and editorial staffs of The Denver Post had no role in this post’s preparation.
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