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).
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.
Photo by Kindel Media from Pexels
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.
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.
The cannabis industry is on edge as it waits to see how the federal government acts. On one side is the slow moving Biden/Harris administration and the Drug Enforcement Administration (DEA) slow walking rescheduling. The DEA is having to wade through overwhelming positive support for fellow agencies and the general public. On the other side, House Speaker Mike Johnson (R-LA) has allowed groups from his party to protest and try to stop the process and issuing statements on the dangers of marijuana. Coupled with a mess in California and a significant drop in investment in the industry as everyone waits the outcome, things are tough. But there are positive signs for NY legal marijuana.
New York was one track to be the biggest single market perhaps in the word in the when they approved recreational marijuana. But a last minute major overhaul of the process a few weeks before it rolled out ended in a massive chaos. January 2023 launch the first legal store, but at year end there were roughly 25 legal dispensaries and ultimately 2,800 illicit ones in the Empire State. While consumers may or may not have known or cared about the legality of where they shopped, they should. The products in the stores are unregulated, which is a strong health issue as ingredients and dosage could vary significantly.
Summer Lifestyle Photos 2023
Wana Brands is the largest gummy company in the industry. They are in 20 states, Canada and Puerto Rico and are backed by Canopy and the alcohol giant Constellation Brands. Highly respected, they are the most mainstream major product company in the industry. Entering the New York Market, is a sign things are starting to normalize. NY has closed over 800 illicit stores and is working toward 200 legal ones.
Joe Hodas, President of Wana shared “Wana’s entry in the New York market has been a move that’s been in the works forquite some time. We’ve already established a strong presence in over 20 stores,including The Travel Agency and Housing Works. Orders are rolling in and morelocations will be coming online soon. While our initial focus is on the New York City area,we’re working on expansion into upstate as well. We believe New York will be one of themost important states on the map for us and we are excited to get more products intothe hands of New Yorkers and all those who visit from around the world.”
When asked about why enter the NY market now, Hodas responded.
“Entering the New York market for us was all about timing. In the past, the prevalence of illicit stores in the city made it a challenging environment for a brand like ours. But during my recent visits, I noticed a shift—there’s now a more robust network of regulated, legal stores. We felt it was finally the right moment for Wana Brands to bring our products to New Yorkers. We couldn’t have made this move without our partner, urbanXtracts. Their state-of-the-art manufacturing capabilities and shared commitment to quality have made this launch possible and we’re excited to see what the future will bring.”
“The Travel Agency is thrilled to partner with Wana in this vibrant New York cannabis market, that we’ve helped grow since its launch. Wana is also one of this industry’s pioneers, building their business through consistent products and the exploration of new formats and flavors. We look forward to collaborating with Wana in providing New Yorkers with safe, high-quality cannabis experience.” stated Paul Yau, The Travel Agency, Co-Founder and CEO. One of the larger, legal dispensary brand in NYC.
This tony California town still think legal cannabis stinks and is going to court to stop it.
In 2018, California was fully legal, but one posh town made a big stink about the odor of cannabis being grown nearby. The Fresh Toast covered it then, and it seems the fight continues on. Th small seaside town of Carpinteria is in Santa Barbara County in California. The pricey enclave of old town Carpinteria is the third most expensive neighborhood in the United States per square foot at $4,129 per square foot. With a population of 12,950 is it a a popular surf destination with a slogan of “World’s Safest Beach”. But this California town still thinks cannabis stinks. And some residents want to stop it.
Old Carpinteria is a town in a bigger country. The town has a city council, but the farms outside the city limits are rest in the country. A group of city residents filed a class-action lawsuit in September against two cannabis farms in the county they allege are destroying property values. Weed farming has become a massive industry in Santa Barbara. Last statistics show marijuana farms grown $260 million, the second largest crop only behind strawberries at $811 million. But other agriculture farms are unhappy and say they are harming thier crops of roses, avocados and more.
The terpenes in the plant provide the smell and some of the essential therapeutic benefits. Currently, most legal weed is grown in expansive greenhouses. The high cost of indoor grow has not only shown up at the shelves of dispensaries, but also in weak profits for growers. Being in a greenhouse produces year round crops, but can be a smaller footprint.
Santa Barbara Coalition for Responsible Cannabis coalition has spent over a million dollars fighting weed farms in the county. Two years ago, after much legal wrangling, they signed a peace treaty with a leading growers’ organization in the Carpinteria Valley. But they say they haven’t followed the deal which included installing the latest tech to “clean the smell”.
Residents want them to adopt state-of-the-art clean-air technology in their open-vented greenhouses. Carbon filters called “scrubbers” have been shown to be effective in preventing the smell of cannabis from wafting out of the roof vents and into neighborhoods. Only four of 20 active marijuana farms in the valley are fully equipped with them, county records show.
Santa Barbara County, which oversees regulation, has been very slow in addressing the issue via mandates. There are a variety of crops and they are concerned about more regulations on farming in general. Rather, than encourage both sides to be good neighbors. Five years into it, it seems patience and good neighbor spirit is wearing them.
With over 440,000 working in the cannabis industry, it overtook these groups – but is still way behind others.
Back in 2020, we predicted cannabis industry workers (as an industry) would overtake computer programmers. And, it happened. Currently there are 440,000 people working in weed, and 343,000 in computer programming. While a large amount of computer programmers work for marquee companies like Amazon, Microsoft, Apple and Stripe, most cannabis workers work for mom and pop businesses.
The economics of the marijuana industry is also positive as the jobs are spread out across the country and in different sized communities. Most tech jobs are in hubs including Atlanta, Austin, New York City and Seattle. Currently, the cannabis industry is at the mercy of DC and the Biden administration as it waits rescheduling. Overall, the federal government is the largest employer in the US with 2.95 million clocking in to make things run, which doesn’t always understand start up industries.
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The cannabis industry is way behind the behemoths of retail and fast food. Their base is a mixture of big companies and small business in almost everyone community. There are 9.2 million workers employed as retail salespersons, cashiers or first-line supervisors and 4,717,192 workers in fast food taking and making your coffee, burger, taco and donuts.
According to some tech workers in Seattle, computer programmers have reached the apex of benefits during the pandemic and now are settling into to fewer perks like the rest of the work force. Still the average salary of programmer is $100K while in the cannabis industry, it is $47K. There is a significant difference in training and location, but the cannabis industry still provide a good number of jobs in country.
When it comes to numbers, the cannabis workforce is about the same size as Target (450K), Kroger (420K) and FedEX (480K). It is way smaller than Amazon (1.6 million) and Walmart (2.3 million). There are almost 1.9 million farmers and over 1.5 million realtors (members of the National Association of Realtors). And, in regards to jocks, there are a bit over 35K who work in all the professional sports in the United States.
