As the marijuana legalization trend sweeps around the U.S., more and more states like Massachusetts are allowing for the at-home cultivation of cannabis. According to the National Association of Realtors, this has many in the real estate industry wondering what that will mean for home sales and the rest of their business.
“Members in states where marijuana has been legalized to some extent have been asking us to conduct this kind of research because it is directly affecting their business,” said Jessica Lautz, National Association of Realtors director of behavioral and demographic trends. “Whether it is influencing property values, the number of all-cash purchases or demand for various types of commercial properties, it is clear that this billion dollar industry is making an impact.”
While much of the cannabis industry’s impact on residential real estate markets is still in motion, one thing has become clear. Selling a grow house is easy.
According to a recent report from the National Association of Realtors, among residential members who had sold a grow house, a majority said that they had no difficulty making the sale.
While that statistic varies between medical-only states (73%) and those with recreational programs as well (67%), it is obvious that buyers are not backing down just because of a little bud smell. Not only that, but 9 in 10 of those same respondents said they had no issues surrounding the home’s title when selling the grow house. Approximately 70% also disclosed that the home was used as a grow house at sale.
Presumably, buyers are unfazed by the idea of purchasing a former grow-house because people are moving to weed-legal states to take advantage of the progressive laws and access to medicine.
In Canada, meanwhile, realtors are pushing to ban at-home cannabis cultivation because it could “damage property, endanger at-risk populations and increase housing costs, especially for lower income Canadians.”
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