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Legal Marijuana And Property Values

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Ohio just became the 24th recreational legal state and over 50% of the country live where you can got to a dispensary and buy a pre-roll, gummies, etc. States with legal weed benefit greatly from tax revenue, usually more than alcohol review and crime doesn’t increase. But what about legal marijuana and property values?

On average, in states where recreational marijuana is legal, cities with retail dispensaries saw home values increase $22,888 more than cities where marijuana is illegal from 2014 to 2019 according to the National Association of Realtors (NAR).

 RELATED: Will Americans Tolerate Marijuana Odors As Legalization Progresses?

In general, states with full legalization are also states with a younger population and a larger industry bases, attracting a more broadminded population.  Also, a Gallup poll suggested household with over $100,000 income are most likely to support legalization.

Legal Marijuana And Property Values
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There are downsides in the home real estate market for cannabis users. Like tobacco, weed can leave an oder in a home which can directly affect selling/leasing a property. A survey by NAR released in April of 2023 discovered in states where medical marijuana is legal and roughly two-fifths of members in states where both medical and recreational marijuana are legal had no issues leasing a property after the use of marijuana in a property (similar to 2021). When there were issues, the most common issue was the smell, which 30 to 35 percent of these members had encountered.

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With commercial real estate, there is also interesting data. States where medical and recreational marijuana use is legal, there has been an increased demand in warehouses and storefronts. There is also an increase in property purchasing over leasing in the past year, the majority have seen the increases with warehouses, followed by land, and storefronts.

Another study shows residential property values in legal states outpaced those which still ban marijuana by $48,983 over the past decade. This recently released research is from Real Estate Witch, an online publication owned by Clever Real Estate.

 



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Outdoor Marijuana Grows Are Better All The Way Around

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Despite the massive investment by some in the industry, outdoor grows are the healthier, cleaner option

Like fruits and vegetables, outdoor floors yield the richest flavor and the least expensive products. The same can be said about cannabis, outdoor marijuana grows are better all the way around. When the industry started becoming legal, hundreds of millions were invested in indoor grow with the assumption cost per pound would stay high. Companies like Tilray built massive indoor grows, but over time they have caused expensive upkeep, high consumer prices, and upset neighbors. And do they produce the best cannabis? By leveraging natural resources like sunlight and soil, this method reduces environmental impact, enhances product quality, and fosters community harmony.

RELATED: Music Is A Turn On Like Sex And Marijuana

Outdoor cannabis cultivation drastically lowers greenhouse gas emissions compared to indoor growing. Research shows outdoor farming can emit up to 50 times less carbon dioxide than indoor production, which relies heavily on artificial lighting, air conditioning, and dehumidifiers. Additionally, outdoor grows eliminate the need for energy-intensive equipment, reducing electricity consumption and promoting sustainability. Water conservation is another key advantage; outdoor farms often use natural rainwater or precision watering techniques, minimizing waste. Furthermore, the absence of chemical fertilizers in many outdoor setups helps protect local ecosystems from pollution.

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Outdoor growing is more cost-effective for both producers and consumers. It eliminates expenses associated with indoor cultivation—such as high electricity bills and specialized equipment—making cannabis more affordable. For home growers, cultivating outdoors fosters a connection with nature while empowering individuals to produce their own medicine sustainably.

Sun-grown cannabis benefits from exposure to full-spectrum natural light, enhancing its terpene profiles and cannabinoid production. This results in richer flavors, aromas, and potency that indoor setups struggle to replicate. Outdoor cultivation also allows plants to grow larger and healthier due to unrestricted space and access to diverse soil nutrients. This translates to higher yields and better-quality products for consumers. Additionally, outdoor-grown cannabis often develops unique characteristics influenced by the local terroir, offering a diverse range of experiences akin to wine production.

Outdoor marijuana farms are less disruptive to neighborhoods compared to indoor facilities. Indoor grows often require extensive infrastructure upgrades, leading to increased energy demand and noise pollution from machinery. There has been an uprising by some local governments about the grows.

RELATED: The Science Behind Why Music Sounds So Much Better When You’re High

In contrast, outdoor farms blend harmoniously with their surroundings, relying on natural processes rather than artificial systems. Moreover, outdoor cultivation supports local biodiversity by integrating companion plants that deter pests naturally and enrich the soil.

While outdoor cultivation is environmentally friendly, it poses challenges such as susceptibility to pests and weather fluctuations. However, solutions like greenhouses can provide controlled environments while retaining the benefits of natural sunlight. Choosing resilient strains adapted to local climates further ensures successful harvests.



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The Cannabis Industry Needs Luck With The DEA

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It will take more than Irish luck to help the cannabis industry win over the DEA.

Million of consumers are fans of cannabis, not only to chill out but for medical reasons. In fact, it has become a replacement for alcohol and spanned a movement call California sober. Aside from the thousands of mom and pop small business owners, cannabis employees over 440,000 people. Even the staid AARP has agreed it has health benefits. Over 80% of the country believe it should be legal in some form, but the cannabis industry needs luck with the DEA to move forward. Rescheduling cannabis means changing its classification under the Controlled Substances Act (CSA), moving it from a more restrictive schedule (like Schedule I) to a less restrictive one (like Schedule III), acknowledging its potential medical uses while still maintaining regulatory controls. 

The Drug Enforcement Administration (DEA) had scheduled hearings on the proposed rescheduling of cannabis to begin on January 21, 2025. However, these hearings were abruptly canceled by DEA Administrative Law Judge John Mulrooney following legal challenges from pro-reform witnesses. This cancellation has pushed back the rescheduling process by at least three months, with no clear timeline for when it might resume.

DEA Interim Final Rule: What Is 'Synthetically Derived THC'?
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The delay stems from allegations of improper communications between DEA officials and anti-rescheduling witnesses. While Judge Mulrooney rejected some key arguments from rescheduling proponents, he granted a request for leave to file an interlocutory appeal, effectively putting the entire process on hold.

The transition to the current administration has further complicated matters. On February 11, 2025, Terrance C. Cole was nominated for DEA administrator, an individual known for his opposition to cannabis reform. This nomination signals a potential shift in the DEA’s approach to marijuana policy, which could further impede rescheduling efforts.

Even if rescheduling were to move forward, it would face significant regulatory challenges. Critics argue that as a Schedule III drug, marijuana would remain under DEA regulation, requiring the approximately 15,000 cannabis dispensaries in the U.S. to register with the DEA and fulfill strict reporting requirements.

RELATED: Marijuana Use And Guy’s Member

The cannabis industry eagerly awaits rescheduling, as it would bring significant benefits, including the ability to claim federal tax deductions and credits currently prohibited under 26 U.S.C. § 280E. However, the ongoing delays and potential policy shifts under the new administration have created uncertainty in the market.



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Will Marijuana Help States During Economic Uncertainty

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Since the last downturn, more states have legal marijuana – with its strong revenue stream

It seems economic uncertainly has arrived. Wall Street has taken a major tumble as unemployment seems to rise. Consumer confidence has been shaken as prices on staples, including eggs, remain high. Tariffs with neighboring countries are threatening jobs and household budgets.  While the federal government is less concerned, state budgets could take bigger hits.  But will legal cannabis, will marijuana help states during economic uncertainty?

RELATED: Science Says Medical Marijuana Improves Quality Of Life

Marijuana legalization has emerged as a powerful economic tool for states, offering a lifeline during uncertain economic times. By fostering job creation, generating significant tax revenue, and stimulating local economies, the cannabis industry has proven to be a transformative force.  Already, three states make over $500 million in annual tax revenue from the plant.

Photo by Cappi Thompson/Getty Images

The cannabis industry is one of the faster-growing sectors in the U.S., with job opportunities spanning agriculture, retail, manufacturing, and ancillary services such as compliance and marketing. Over the past decade, legal cannabis jobs have surged, with projections indicating continued growth should the federal government allow. For instance, states like Massachusetts already report more cannabis-related jobs than traditional professions like cosmetology. This job creation not only reduces unemployment but also injects income into local economies through consumer spending on essentials like housing and transportation.

Legal marijuana markets generate billions in tax revenue annually. States have embraced legalization use these funds to bolster budgets and invest in critical public services. For example, Colorado allocated $7.3 million from cannabis tax revenue to homeless services and housing initiatives1. Nationwide legalization could further amplify this impact, with estimates suggesting $8.5 billion in annual tax revenue for all states combined. These funds are often reinvested in education, infrastructure, public health programs, and community development projects.

Cannabis legalization revitalizes local economies by attracting businesses and increasing demand for commercial real estate. Most cannabis business tend to be mom and pop business including retailers, farmers and local regional producers of products. From cultivation facilities to retail dispensaries, the industry drives investments in equipment and infrastructure that benefit both urban and rural areas. Moreover, every dollar spent on cannabis generates an additional $2 in economic activity through a multiplier effect. States like Alaska, Colorado, and Massachusetts demonstrate how per-capita economic benefits can significantly enhance local prosperity

“Cannabis drives economic growth, creates jobs, and generates tax revenue while offering a safer alternative to alcohol. It’s a less harmful recreational substance and a valuable medicine to millions of Americans” shares industry expert Jesse Redmond, Head of Investor Relations & Business Development of LEEF.

Legalization also reduces the financial burden of enforcing marijuana prohibition. The U.S. spends approximately $7.7 billion annually on drug enforcement. By redirecting these funds toward education, regulation, and community support programs, states can achieve both economic savings and social equity.



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