Pro Teck’s July HVF Monthly Market Report focused on three Colorado metros in our Top Ten. Upon further inspection of the other Top 10 hottest housing markets on our list, we noticed a trend – nine of the top 10 CBSAs are in states with legalized marijuana. Colorado, Oregon, Washington and California are all seeing green, in more ways than one.
According to recent studies, the legalization of retail sales of marijuana is having a positive impact on home values, with one Colorado study citing a six percent increase in housing values attributable to pot legalization. Looking at our Top Ten data, the sale prices increased by an average of 10% across the nine metros in the past year. Across other market statistics, such as months remaining inventory, active price change, and days on market, these pro-pot markets are all trending up.
How could marijuana be driving this growth? Buyers want more for their money, and legalized weed is seen as an additional positive amenity, not a blight on society like it was portrayed in Reefer Madness. Recreational marijuana brings jobs, investment opportunities and property development. It’s like the 1800s gold rush has gone green, and potential homeowners are looking to capitalize.
Massachusetts will be the next state to legalize recreational marijuana sales, with initial estimates having the market exceed $1 billion by 2020, with the state seeing an estimated $200 million in additional tax revenue.
The Commonwealth is seen by many as the tipping point for further east coast legalization. We will keep an eye on Massachusetts real estate trends to see if they mimic gains seen in other pro-weed states.
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