Marijuana legalization is a “burning” topic all across the country. We have even had several posts on the subject. However a new report from the National Association of Realtors seeks to shed light on legalization’s impact on the real estate industry. They point out that in states where marijuana is legal, the product is grown, harvested, stored, sold, and consumed within the state lines. And as such, this activity increases demand for land, warehouses and retail locations for the product. In addition, they discuss the issue of marijuana being used in rental properties, HOAs creating rules, and title questions about selling a home where marijuana has been grown or consumed. Interestingly, they find that in states where marijuana has been legal the longest, 27% of them saw a decrease in residential property values near dispensaries and 12% saw an increase. Indeed….
“As marijuana is an all-cash business, earnings from those in the business were cash proceeds. Just under one-fifth of landlords were unwilling to take cash for rent. Forty-two percent of those in states where prescription marijuana is legal would take cash for rent, and 41 to 47 percent of those where marijuana is legal for both prescription and recreational use would take cash for rent.”