Do Marijiuana Laws Affect Real Property Values?

by Administrator on Nov 30, 2016

Being told by market participants that they were influenced by the changing marijuana law in Nevada caught me off guard.  It never occurred to me that a recreational marijuana law in Nevada would affect buyers.  I didn't vote for the legalization, its hard for me to believe that any more openess in Las Vegas will lead to good things.  I guess for visitors it may be great but for those of us who provide a service I just can't see that a few thousand new "stoned" drivers or pedestrians moving around will be a benefit.

I was immediately skeptical when told that Colorado homes increased in price after the approval of their law, so I hit Google and did a little research.  Turns out there are a number of reports that have indicated strong upward movement in the housing market following legalization.  One CNN Special Report noted that an article published In March noted that "Denver experienced the second-largest jump in (its) annual home prices at 10%, just behind San Francisco, according to the S&P/Case-Shiller Home Price Index."

Turns out there has been a boom related to growers, dispenseries, tax revenues and accessorie sales.  Who knew?  I have some reservations calling strong real property market performance a good thing when it is caused by an event or a law that might not be that great for the community but it appears that there are compelling statistics.

Will Nevada home prices also elevate in response to an influx of people and / or the added market activity generated by pot?  I'm sure that the economic activity will provide jobs, sales and taxes.  The fact that Nevada is just becoming another state that allows marijuana could however dampen any rush to the state as was seen in Colorado.

We may see some benefits to the state from the legalization but they may not extend to increased home prices.  I'm sure that there will be several studies that track the impacts to Nevada (an California) markets as marijuana legalization becomes a reality.

When stationed overseas I often thought that just allowing citizens to make their own choices with regard to their drug or drugs of choice was not a bad way to go.  Anyone who wants a drug, restricted or not, will generally find a way to find it. 

If the Las Vegas Nevada real estate market ticks up in response to the passage of our new marijuana law, and its a significant increase, residents will benefit by seeing their equity increase in their homes and appraisers will document the increases over time.

For more appraisal information contact Glenn J. Rigdon MA, MRICS, ASA is a Las Vegas / Henderson Nevada based appraiser who can be contacted via email or via his business website known as Appraiser Las Vegas  (http://www.appraiserlasvegas.com), or you can also click on “Contact Us” on the home page of this website or visit my public profile at LinkedIn at http://www.linkedin.com/pub/glenn-rigdon-ma-mrics-asa/1a/30b/879/

Article source: http://www.valuationarticles.com/Real-Estate-Markets/16-Do-Marijiuana-Laws-Affect-Real-Property-Values.html

General

Real Estate Markets 1237 Views

Most Recent Articles

Actions

SITE FOR SALE

This "sister" website to our established Appraisal Articles website that is located at www.appraisalarticles.com is FOR SALE or for lease together with 100 custom written appraisal-related articles

Included with a purchase is the transfer of the URL, use of the website template, 100 custom written articles that display the buyer as the author with email contact and backlinks, 3 years of free hosting and free troubleshooting.

Contact me if you are interested at grigdon@cox.net.

Random Articles

Cancel that Appraisal !

There are not many things that are more deflating than accepting an appraisal order made by a bank, individual or company and then having them turn...

Appraisal Business Operation

Facts are Facts, Right?

Appraisers find from their very first day in training that property information collected from a source that "is deemed reliable" like the county...

Residential Appraisal

COVID-19 and Commercial Real Estate

There's not a lot of information out there on commercial real estate transactions in Las Vegas, NV as of the 1st week in May but the few commercial...

Value Influences

Appraising Homes on Tribal Land

My experiences with appraising a single-family residential (SFR) home on an Indian reservation I am sure are not unique, but there were important...

Residential Appraisal

Industrial Building Appraisals

Industrial buildings are constructed to span an entire spectrum of uses from simple warehousing to complex research and development facilities....

Industrial Appraisal

Footer block #1

You can change this block in admin panel. Remember, if you change template, this block will be lost. We advise you to clone this block.

Ne lorem percipit efficiantur mei, ius ut simul vidisse. An vel probatus explicari appellantur. Has et comprehensam interpretaris, quo no inimicus maluisset temporibus. Ea mea quod. Learn more

Footer block #2

You can change this block in admin panel. Remember, if you change template, this block will be lost. We advise you to clone this block.

Ne lorem percipit efficiantur mei, ius ut simul vidisse. An vel probatus explicari appellantur. Has et comprehensam interpretaris, quo no inimicus maluisset temporibus. Ea mea quod.

Submit an article

You can change this block in admin panel. Remember, if you change template, this block will be lost. We advise you to clone this block.

Ne lorem percipit efficiantur mei, ius ut simul vidisse. An vel probatus explicari appellantur. Has et comprehensam interpretaris, quo no inimicus maluisset temporibus. Get in touch Ea mea quod incorrupte.