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The Marijuana Dispensary Around the Corner Isn't Hurting Property Values, Realtors Study Finds

By David Jagielski - Mar 11, 2020 at 3:11PM

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In some cases, property values near cannabis businesses have actually gone up substantially.

A recent survey done by the National Association of Realtors found that proximity to a marijuana dispensary doesn't usually have an adverse impact on property values.

In states where only medical marijuana is legal, 85% of Realtors said they saw no change in the values that were located close to a dispensary. That percentage dropped a little, down to 75%, in states where both medical and recreational marijuana have both been legal since 2016. In states that legalized recreational and medicinal pot before 2016, that percentage fell to 60%. 

But while there were some decreases in property values relating to a nearby marijuana business, even in the states that fully legalized pot prior to 2016, only 5% of surveyed Realtors said that they had seen  "substantial" decreases. And on the flip side, 4% said they had seen valuations rise substantially for similarly situated properties.

Social attitudes about marijuana have changed fairly significantly over the past several years. In 2012, only Colorado and Washington had legalized the drug for adult use; now, recreational marijuana is legal in 11 states, and more than 30 permit it for medicinal use.

Cannabis leaf on a green traffic light.

Image source: Getty Images.

More dispensaries and pot shops to come

Canopy Growth (CGC -18.57%) in 2018 said that expected to have as many as 400 stores by the end of 2019. But the retail rollout hasn't gone as smoothly as planned in Canada, which is a big reason pot stocks haven't done as well as investors and analysts hoped they would. However, as the industry grows, there will be even more dispensaries, especially in the U.S., where legalization efforts continue to progress.

Canopy Growth reached a tentative deal to purchase Acreage Holdings (ACRGF) last year, contingent on the U.S. government legalizing the sale and production of cannabis. That would give Canopy a strong foothold in the market. But until that happens, the deal will likely remain shelved.

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