Proximity to pot shops could boost home prices

The legalization of marijuana could have an unexpected bonus for Canadian homeowners.

A US study has found that home prices in neighbourhoods where shops began selling recreational pot in 2014, rose around 8% compared to other areas.

Academics in Georgia and California used publicly available data from Denver and the state of Colorado, to analyze home prices before and after retail sales of pot became legal.

The positive effect was seen in prices for homes within 0.1 miles of legalized pot shops in comparison to those between 0.1 and 0.25 miles away.

The authors of the report admit that their research was over a relatively short time period and do not draw any conclusions as to why the prices were higher nearer the shops, although they note that they may include “an increase in housing demand as a result of an increase in marijuana-related employment, lower crime rates, and additional amenities locating in close proximity to retail conversions.”

In Canada there may be no such impact, especially as many landlords are expected to ban marijuana use in their properties, and municipalities may not license stores in residential areas.

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