Weed is good for home values, real estate economists find - Jeff Ostrowski, Palm Beach Post:
September 25, 2017 - "With Palm Beach County’s first medical marijuana dispensaries poised to open soon ... here’s a bit of heartening news for nearby homeowners: Pot shops are good for home values.
"According to a study published in the academic journal Real Estate Economics, single-family homes within 0.1 mile of Denver’s 103 pot shops saw an increase in value of 8.4 percent compared to those located a bit farther — between 0.1 miles and 0.25 miles — from dispensaries. That increase in property value was estimated to be $27,000 for a typical house.
"The study, conducted by researchers from the University of Wisconsin, the University of Georgia and California State University, looked at appreciation since Jan. 1, 2014, when Colorado’s recreational cannabis law took effect.
“'The presence of retail marijuana establishments clearly had a short-term positive impact on nearby properties in Denver,' says Moussa Diop, an assistant professor of real estate at Wisconsin. 'This suggests that in addition to the sales and business taxes generated from the retail marijuana industry, municipalities may experience an increase in property taxes. It’s an important piece of the puzzle as more and more voters and policy-makers look for evidence about the effects of legalizing recreational marijuana, as the issue is taken up by state legislatures across the country.'
"Explaining why properties nears pot shops appreciated so strongly 'remains a puzzle that we leave to future research,' the authors write."
Read more: http://www.palmbeachpost.com/business/weed-good-for-home-values-real-estate-economists-find/cKrqWUVniJJPe2umllny8M/
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September 25, 2017 - "With Palm Beach County’s first medical marijuana dispensaries poised to open soon ... here’s a bit of heartening news for nearby homeowners: Pot shops are good for home values.
"According to a study published in the academic journal Real Estate Economics, single-family homes within 0.1 mile of Denver’s 103 pot shops saw an increase in value of 8.4 percent compared to those located a bit farther — between 0.1 miles and 0.25 miles — from dispensaries. That increase in property value was estimated to be $27,000 for a typical house.
"The study, conducted by researchers from the University of Wisconsin, the University of Georgia and California State University, looked at appreciation since Jan. 1, 2014, when Colorado’s recreational cannabis law took effect.
“'The presence of retail marijuana establishments clearly had a short-term positive impact on nearby properties in Denver,' says Moussa Diop, an assistant professor of real estate at Wisconsin. 'This suggests that in addition to the sales and business taxes generated from the retail marijuana industry, municipalities may experience an increase in property taxes. It’s an important piece of the puzzle as more and more voters and policy-makers look for evidence about the effects of legalizing recreational marijuana, as the issue is taken up by state legislatures across the country.'
"Explaining why properties nears pot shops appreciated so strongly 'remains a puzzle that we leave to future research,' the authors write."
Read more: http://www.palmbeachpost.com/business/weed-good-for-home-values-real-estate-economists-find/cKrqWUVniJJPe2umllny8M/
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