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 legal cannabis industry is thriving in the U.S., reaching its highest-ever number of jobs and sales, a new report shows. Vangst, a cannabis industry job platform, found that at the beginning of the year, there were 440,445 full-time-equivalent jobs in the legal cannabis industry—a 5.4 percent increase from 2023. Annual sales of legal marijuana, recreational and medical, increased by 10.3 percent to $28.8 billion last year, it added.
The GOP’s argument against marijuana took a body blow from Germany
Running against the grain of public sentiment, some members of the GOP are fighting against cannabis rescheduling and trying to be clever. The Drug Enforcement Agency (DEA) is still having internal discussions about whether to reschedule cannabis from a schedule I to schedule III-controlled substance with some in the GOP wishing to stop the process. But along comes Germany and they are deflating their efforts.
Germany has the biggest economy in the EU and are a leader in the United Nations and NATO. A practical country, they just legalized marijuana. Officials shared legalization would undermine criminal trade in the drug, guard against harmful impurities, and free police to pursue more serious crimes alongside providing medical benefits.
Republican Senators Jim Risch (R-), Mitt Romney (R-UT) and Pete Ricketts (R-NB) are unhappy with the the administration’s plan to reschedule marijuana. To stop or slow the process, these senators question if it violate US treaty obligations. Data shows 89% of citizens believe it should be legal in some form, so they are definitely swimming against the flow of public opinion. Additionally, science, data and the healthcare community have proven it has clear medical benefits.
The United Nations’s (UN) drug control body reaffirmed legalizing marijuana for non-medical or non-scientific purposes a violation of international treaties. But enforcement is non-existent. While Uruguay was technical the first, Canada was the first to fully implement it and the UN has done nothing. Since then Georgia, Luxembourg, Malta, Mexico, South Africa and Thailand have made the move without any issues.
The Senators move has some support in the house, but Senator Chuck Schumer (D-NY) has made it clear he wants progress on cannabis legalization. Germany’s move severely undercuts the GOPs efforts.
Andrew Cooper, partner at Falcon Rappaport & Berkman LLP, one of the top cannabis law firms believes “Consequently, if anything, the fact that Germany legalized adult-use cannabis despite all the hurdles (including not only the Single Convention, but the Schengen Convention of 1985, the EU Framework Decision 2004/757/JHA of 2004, and the Narcotic Drug Act (BtMG), when the U.S. only really needs to address (and likely ignore) the Single Convention, may provide some impetus to the DEA to follow suit”.
Tom Zuber, Managing Partner of Zuber Lawler whose west coast firm has a robust cannabis division states “It’s exciting to see Germany making history by legalizing cannabis at the recreational level as the largest economy in the European Union. I hope that Germany’s leadership on this front will inspire other countries throughout the world to do the same, including the United States.
Yet another major country has legalized marijuana – hopefully the DEA is paying attention. Here are some expert’s take on where it stands.
Another major country made the commitment, but will Germany’s legalizing marijuana push the DEA to act? Germany joined Malta and Luxembourg in Europe. Officials shared legalization would undermine criminal trade in the drug, guard against harmful impurities, and free police to pursue more serious crimes. In doing so, they have ignored the UN ban and joins other countries including Canada, Uruguay, and South Africa.
In the United States, the cannabis is still awaiting on decision from the Drug Enforcement Agency (DEA) regarding rescheduling. After a very slow start to his commitment, President Biden is moving now on his campaign promise and give younger voters another reason to support him. But according to Pew Research Center, an overwhelming 88% of U.S. adults say either that marijuana should be legal for medical and recreational use by adults (59%) or that it should be legal for medical use only (30%). Only one-in-ten (10%) say marijuana use should not be legal. It is a popular decision and is widely used in blue and red states and in legal and illicit states. Key experts have weighed in on whether Germany’s move will push for the DEA to act soon.
“We do not see Germany’s progress having much impact on the DEA. Our thesis is we are witnessing a coordinated democratic effort to advance cannabis reform ahead of the election to mobilize and sway younger voters. We continue to believe it is unlikely that the head of the DEA (a Biden appointee) will go against the HHS recommendation in an election year. So, we remain optimistic that we’ll land on Schedule III, but do not see Germany as a major driver of US reform.” says Jesse Redmond, Managing Partner, Water Tower Research.
Andrew Cooper, partner at Falcon Rappaport & Berkman LLP, one of the top cannabis law firms believes “Consequently, if anything, the fact that Germany legalized adult-use cannabis despite all the hurdles (including not only the Single Convention, but the Schengen Convention of 1985, the EU Framework Decision 2004/757/JHA of 2004, and the Narcotic Drug Act (BtMG), when the U.S. only really needs to address (and likely ignore) the Single Convention, may provide some impetus to the DEA to follow suit”.
Tom Zuber, Managing Partner of Zuber Lawler whose west coast firm has a robust cannabis division states “It’s exciting to see Germany making history by legalizing cannabis at the recreational level as the largest economy in the European Union. I hope that Germany’s leadership on this front will inspire other countries throughout the world to do the same, including the United States.
Time will tell if will Germany’s legalizing marijuana push the DEA to act.
