Legal Weed Has Grown Colorado’s Real Estate Industry
In 2012, Colorado became one of the first states to legalize recreational marijuana. Over the past decade, weed has impacted everything from healthcare and tax collection to, you guessed it, real estate. Here’s how legal marijuana has kept Colorado’s real estate industry green over the years.
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, particularly in long-legalized markets like Colorado state. In fact, a recent survey by the National Association of REALTORSⓇ found that 60% of REALTORSⓇ reported no change in property values, 8% reported a slight increase, and 4% reported a significant increase. Between 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), is it any wonder that properties down the street from the dispensary are still in demand?
Of course, as soon as the legal hoops that at-home weed smokers had to jump through were dissolved, another set of restrictions appeared. Most homeowner associations have developed marijuana-specific rules and regulations since Colorado’s legalization in 2012. While Coloradans over 21 can legally grow marijuana for personal use, counties, municipalities, and organizations like HOAs can set stricter standards. In reality, in markets where medical and recreational weed were legalized before 2016 including Colorado, 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. Most members reported restrictions across the board, illustrating just how HOAs have responded to the legalization of marijuana throughout the last decade.
Selling a Grow House
Marijuana legalization also opened up a whole new field for budding real estate agents. The aforementioned NAR survey also 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. Perhaps the perfect symbol for marijuana in real estate, listing grow houses could be the natural next step for the industry at large.
Grow Your Career
Whether you’re selling a grow house or showing a home near a dispensary, understanding weed’s impact on Colorado 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.
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