“Our estimates show that, on average, legalizing retail marijuana in Colorado increases housing values by approximately 6 percent, or $15,600 per property,” they write. This amounts to “about 27 percent of the overall price appreciation” during the period they examined (2010 to 2015).”
“Housing values experienced an immediate jump of 3 percent within one quarter after the adoption of retail marijuana laws,” they add. “The effect is largest in populous areas, and strongest among properties in low and middle price tiers (below $500,000).”
However, with increased property values came other problems…
Cheng and his colleagues note that there are costs associated with legalizing pot—the most obvious one being adverse effects on public health. They note that legalization resulted in large increases in marijuana-related emergency-room visits, hospitalizations, and traffic deaths.