Legal Weed Could Grow Arizona’s Real Estate Industry
In November 2020, Arizona became the thirteenth state to legalize recreational marijuana. Now, it’s safe to say that legalization will impact everything from healthcare and tax collection to, you guessed it, real estate. Here’s how legal marijuana could keep Arizona’s real estate industry green moving forward.
As more and more states legalize recreational marijuana, the impact on property values near dispensaries is a common concern. The good news is that there doesn’t seem to be much change. In fact, a recent survey by the National Association of REALTORS® found that, in long-legalized states like Colorado and Washington, 60% of REALTORS® reported no change in property values, 8% reported a slight increase, and 4% reported a significant increase. In states that legalized cannabis more recently, like Nevada and California, a whopping 75% reported no change, 5% reported a slight increase, and 2% reported a significant increase. Luckily, between this data, the rise of cannabis tourism, and the ever-increasing popularity of marijuana (seniors aged 55-64 had a whopping 455% increase in usage between 2002 and 2014), it looks like Arizona properties down the street from the dispensary will still be a hot commodity moving forward.
Of course, now that the legal hoops that at-home marijuana smokers had to jump through are dissolved, another set of restrictions will appear. In other states that have legalized recreational marijuana, most homeowner associations have developed marijuana-specific rules and regulations. In markets where medical and recreational weed were legalized before 2016, only 9% of respondents were allowed to grow at home. Only 3% reported smoking allowances in common areas, and 1% reported growing in exposed areas. In more recently legalized markets, 4% were allowed to grow at home, and 4% reported smoking allowances in common areas. Most members reported restrictions across the board, illustrating just how HOAs have responded to the legalization of marijuana throughout the last decade, and it illustrates the kind of rules and regulations that might go into place across Arizona as well.
Selling a Grow House
Marijuana legalization has also opened up a whole new field for budding real estate agents. The aforementioned NAR survey found that, in states that legalized more than three years ago, nearly 25% of REALTORS® have successfully sold a grow house, or a property used specifically for the cultivation of marijuana. Of that figure, 75% reported that the grow house was not hard to sell, and 85% had no title issues. In states that legalized more recently, 11% have sold a grow house with 73% stating it was not hard to sell and 64% noting no title issues. Perhaps the perfect symbol for marijuana in real estate, listing grow houses could be the natural next step for Arizona agents and the industry at large.
Grow Your Career
Whether you’re selling a grow house or showing a home near a dispensary, understanding weed’s potential impact on Arizona real estate can help you serve your market that much better. Take some time to explore these and other budding topics to grow your career, perhaps with our comprehensive Current Issues and Trends in Real Estate course. Your competition is sure to be green with envy.