Check out the interesting article on the connection between Michigan’s Legalization of Marijuana and rising home prices.
The Cannabis Craze Puffs into Michigan Real Estate
Marijuana legalization, recreational or medicinal, has been a controversial topic for decades. But, now that 16 states have legalized its recreational use and 19 have legalized medicinal applications, the question now is when will marijuana reach federal legalization. According to a recent Gallup poll, 68% of American adults are in favor of legalizing cannabis, which highlights the growing shift of America’s perspective on jazz cabbage.
The Benefits of Legal Cannabis in Michigan
Based on projected sales, the Michigan Department of Treasury estimates that sales tax revenues from marijuana sales will be $97.5 million in 2020 and $143.0 million in 2021. Michigan’s marijuana industry has matured quickly compared to other states, which has helped with residents’ acceptance of the new industry blooming in their communities.
“The recreational industry, once fully implemented, will have a significant impact on Michigan’s economy, with hundreds of millions of dollars in tax revenue flowing into state and local governments,” said Michigan Cannabis Industry Association Director Robin Schneider.
This new industry doesn’t just collect valuable tax revenue, it also opens up new job opportunities across the state. Michigan has seen waves of hiring for local dispensaries and growing operations. The marijuana industry has created more than 320,000 jobs nationwide, including over 18,000 positions in Michigan alone.
Cannabis’ Connection to Increased Home Prices
Michigan was the 10th state to legalize the sale of recreational marijuana and had the 11th lowest median home value in the country at $156,000 in 2018. Today, the Great Lake State is still a very affordable state to purchase a home, but the median home value has increased 26% over the past three years. This increase in home values aligns with the trends set by states that have also legalized cannabis.
Key Facts Regarding States That Have Legalized Cannabis
- From 2014 – 2019, cities with retail dispensaries saw their home values increase $22,888 more than cities where marijuana is illegal.
- In cities where only medicinal marijuana is legal, home values increased at a comparable rate to cities where marijuana is illegal; a statistically significant increase in home values could not be attributed to medicinal marijuana legalization.
- States that legalize recreational cannabis see an immediate bump in home values following legalization, even without retail dispensaries opening up. From 2017 to 2019, cities where recreational marijuana became legal saw home values increase by $6,337 more than cities where marijuana is illegal (controlling for population, initial home values, and GDP).
How to Capitalize on This New Industry
Legalized marijuana has already shifted societal norms, created significant legal gray areas as local and federal legislation races to catch up, and generated a lucrative source of tax revenue. Most importantly for real estate agents, it’s created bountiful jobs, bringing more people into your community. As mentioned above, the marijuana industry has created over a quarter-million jobs nationwide and close to 20,000 in Michigan. The industry is far-reaching, so jobs are diverse and require a variety of skill sets.
This surge of workers can be a great opportunity to get your foot in the door and establish yourself within this industry’s community for future leads. May your career grow ever higher!