As more states relax marijuana laws, these legal changes are affecting the real estate industry on multiple levels, according to a new National Association of Realtors (NAR) survey released on Tuesday. The “2019 Marijuana and Real Estate: A Budding Issue” report says Realtors have noticed the legality of Mary Jane making an impact on real estate markets in various ways. In states where pot is legal in some form, 9 to 23% of Realtors polled said they believe residential inventory is dwindling for a few reasons, including the marijuana industry’s all-cash purchases. 12% noted that they’ve seen an increase in residential property values near dispensaries. 27% reported that they’ve seen a decrease in property value.
On the leasing side, about 50% of survey respondents operating in states where medical marijuana is legal reported having no issues leasing a property formerly occupied by a tenant legally growing pot—as long as the property had been modified and “restored.” In locales where both medical and recreational marijuana is legal, 49% of Realtors said they did not have difficulty leasing a former grow property to a new “grow” tenant.
NAR’s study also revealed the marijuana industry’s positive impact on commercial property demand, and in some areas, commercial property value (think Desert Hot Springs, CA—known these days as “Desert Pot Springs”). More than 40% of Realtors saw an increase in commercial property values near dispensaries in states where marijuana is legal.