People by far prefer living in cities with legal cannabis, according to a new Redfin survey

Whether or not a city has decriminalized cannabis plays a huge role in people’s choice of where to live.

Last November, Gallup released the results of a poll showing support for legal cannabis at an all-time high. With more than 2 in 3 Americans supporting it, it’s no surprise that more people are now using its legality when determining where they live or what they prefer.

In October 2021, a survey by Redfin, a real estate brokerage firm, found that 46% of respondents said they would “prefer” or “only” live in an area where cannabis has been legalized. Meanwhile, 22% of respondents said they would “not” or “rather not” live where adult-only cannabis is legal. Redfin adds that cannabis policies are indeed important factors to consider when deciding where to move, but there are other considerations as well. “People consider the politics of a place when deciding where to move, but the truth is that other factors, including housing affordability and access to jobs and schools, take precedence,” explained Taylor Marr, Redfin’s deputy chief economist

Legal cannabis is driving up home values

However, living in a place with legal cannabis also means that housing is more expensive. Research from the U.S. Census, von Zillow, and other sources show that “home values ​​in states that legalize marijuana in some form increased $6,338 more than states that have not legalized marijuana.” In addition, the study found that home values ​​increased by $470 for every $1 million in tax revenue from cannabis sales.

“Between April 2017 and April 2021, real estate values ​​in states where recreational marijuana is legal rose $17,113 more than states where marijuana is illegal or restricted to medical use,” they found. In the case of states that have legalized cannabis but not yet started selling it, “home values ​​are projected to increase by an average of $61,343.”

“Home values ​​in cities with recreational dispensaries increased $22,090 more compared to home values ​​in cities where recreational marijuana is legal but dispensaries are not available,” the study said. “For every new dispensary a city adds, property values ​​increase by $519.”

“When we controlled for other factors, we found that home prices in areas where recreational marijuana was legalized increased $17,113 more than in locations where marijuana is illegal or legal-only. Even when we narrowed the comparison to recreational and pharmaceutical legalization, this discrepancy remained. Venues legalizing recreational marijuana saw a $15,129 higher increase in value than locations legalizing only medical use.”

“This shows that it is not only the benefits of higher tax revenues, but also the existence of the pharmacies themselves that are driving the price increase,” the researchers explain. “The pharmacies function as commercial establishments where the public values ​​proximity.”

Legal cannabis benefits the economy

The increase in housing costs associated with legal cannabis may be justified given that legal cannabis places are safer to live in. Research shows that when cities legalize cannabis, crime rates have dropped.

A June 2020 National Institute of Justice review of the impact of marijuana legalization on law enforcement shows that “legalization appears to have coincided with increases in crime-solving rates in multiple areas, suggesting that legalization has resulted in a positive net redistribution of marijuana.” Police human resources can lead to allocation. Additionally, fewer people are being processed by the criminal justice system for nonviolent marijuana possession offenses.”

Additionally, enforcing state cannabis laws is already costing law enforcement agencies as much as $7 billion annually. As more states legalize marijuana, law enforcement agencies would have to worry about spending significantly less because the costs associated with enforcing cannabis laws would be lower. There would also be far fewer court cases involving cannabis, fewer people going to court, fewer people going to jail, and all of this only translates to benefits – particularly in the form of saved money.

Meanwhile, living in a cannabis-friendly destination can also provide better access to jobs. These jobs are not limited to the cannabis industry, but for many others as well. A study conducted by the Marijuana Policy Group and RCG Economics shows that legal recreational cannabis could be responsible for supporting more than 41,000 jobs in Nevada alone by 2024 while generating over $1.7 billion in labor income. In addition, the ICF states that at least 81,000 additional jobs, including direct, indirect and induced jobs, are available in California as a result of legal cannabis sales, which have also contributed to at least $3.5 billion in labor income.

Additionally, legal cannabis can significantly enhance investment portfolios across the country and beyond. Cannabis is currently illegal nationwide, but cannabis companies are already listed on various public exchanges. Once cannabis is legal nationwide, cannabis companies will be able to list all of their stocks on all types of U.S. exchanges, which would improve liquidity and give investors access anywhere.

Conclusion

There are still many tough battles to be fought when it comes to legalizing marijuana. But when you see the impact it is making, see the small picture and even the big picture, you will see that the benefits outweigh the risks. You will have a nation of healthier, happier people with better access to jobs, less violent crime, and better health and justice systems.

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