420 with CNW – Study Finds Proximity to Cannabis Dispensaries Increases New Home Prices

December 17, 2018 16:20:23

A recent study whose findings were published in the Contemporary Policy journal shows that prices of new homes jump by up to 7.7 percent in case a cannabis dispensary opens close to those homes.

The researchers compared the data for new homes in Denver, Colorado that were within quarter a mile, half a mile and three-quarters of a mile from a newly opened dispensary. The researchers discovered that the biggest increase (7.7 percent) in price occurred in the price of homes that were within quarter a mile from the cannabis dispensary.

The homes that were within half a mile (but beyond the quarter mile mark) had modest price increases of about 4.7 percent. However, these price hikes fizzled out as the distance between a new home and the cannabis dispensary increased.

It is also interesting to observe that the effect of cannabis dispensaries on housing prices mirrored the effect of new groceries or shopping malls in neighborhoods. However, the researchers refrained from trying to explain why the opening of a cannabis dispensary had such an effect on the price at which homes were sold. They could only guess that it may be due to the convenience of accessing the marijuana dispensary, especially when the public is positive towards marijuana in general.

Another study conducted thousands of miles away in the Netherlands seems to confirm that the findings in Colorado are valid. Igor Goncalves Koehne de Castro, a doctoral student, wrote a master’s dissertation about what happens when a cannabis coffee shop closes in a neighborhood.

He discovered that the rents paid by Airbnb clients reduced by approximately 3 percent in case a cannabis coffee shop closed within a radius of 250 meters from a facility registered on Airbnb.

Locations that were further than 250 meters from the closed coffee shop didn’t register any change in rents.

De Castro had plenty of case studies to follow since lots of coffee shops had closed within the four-year window he examined (2014-2017). Various factors, such as the enactment of laws barring cannabis coffee shops from operating within a certain radius from a school, compelled different marijuana coffee shops to close.

The statistical models from which he gathered his findings reveal that the coffee shops may be an attraction since Amsterdam is a tourist destination and visitors want to be within walking distance from a cannabis coffee shop.

This pair of studies in different geographical locations proves that cannabis legalization has widespread benefits beyond the ones immediately noticeable (taxes and direct jobs in the industry, for example). This also gives further justification that the Colorado jury which dismissed a claim that a marijuana grow facility depressed the value of a nearby property made a correct decision to throw out that claim.

Redfund Capital Corp. (CSE: LOAN) (OTC: PNNRF) (Frankfurt: O3X4) and other industry participants like SinglePoint, Inc. (OTCQB: SING) welcome this piece of additional positive news about the effects that cannabis is having upon the lives of people.

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