Image of a recreational marijuana store in Denver Colorado
~
Home prices have shot up by double-digits, inventory has fallen dramatically and multiple offers with bidding wars have become common.
 
One factor driving the demand: pot. The budding industry has impacted home prices since the state legalized marijuana in 2012.
 
"There has been a huge bump in real estate prices due to the legalization of marijuana," according to James Paine, managing partner at West Realty Advisors. "It's massively pushed up raw land and industry prices."
 
In March, Denver experienced the second-largest jump in annual home prices at 10%, just behind San Francisco, according to the S&P/Case-Shiller Home Price Index.
 
While the legalization of marijuana isn't the only thing driving the market, it has contributed to job growth in the area that has people flocking to Denver.
 
"The pot industry is creating jobs we didn't have before," said Kelly Moye, a Re/Max real estate agent who has worked in the Denver area for 24 years. "It's brand new, it adds a whole new factor to the area; you have real estate needs, housing needs, job needs."
 
The industry has created jobs beyond growers and dispensaries. Legal marijuana has also been a boon for existing businesses like security and HVAC companies who service the new "green" businesses. "Electricians have grown from mom and pops to big-time electric companies," said J.P. Speers, an agent at ‎Berkshire Hathaway Home Services.
 
Denver and its surrounding areas have also become a hot spot for the tech industry, adding to the job rush.
 
"It's fairly affordable, at least for now," said Moye. "The quality of life is great and employers are bringing their employees here."
 
But it's difficult to pinpoint exactly what enticed a person to move to the state. "A lot of them try to hide it," said Speers, who has worked with clients moving to the state because of legalization. "They don't necessarily say they are coming out to be part of the marijuana industry."
 
He said he helped find a rental unit for a mom coming from out of state to access medicinal marijuana for her daughter.
 
He's also seen an increase in lease-to-purchase or home rentals for tenants looking to start growing operations. "They are not necessarily legal operations either," he said.
 
While the new law might be creating more jobs and adding to the housing market's strength, it can sometimes work against sellers. "I had a lot of trouble selling one property because one of the neighbors was growing so much that buyers were concerned," said Speers.
 
First-time buyers and anyone looking for a home at the lower-end of the market face stiff competition. "There are a lot of first-time buyers," said Toby Waters, a real estate agent with Vision Denver Homes. "The rental market is insane, you can save money by buying a house."
 
Inventory has been tight in the city. In a normal market, Denver typically has around 24,000 listings, according to Moye. But right now, she said there are only around 4,000.
 
But there is the nagging question of just how long the real estate buzz will last.
 
Moye said the market has room to run for five to seven years barring any major economic disasters.
 
If more states legalize marijuana, that could also take away some of the state's luster. "We are going to continue to see an increase in population growth based on marijuana until other states start picking up recreational laws," said Speers.
 
~
October 14, 2019

Marijuana breathalyzers expected to hit the street…

Drivers suspected of being high on pot may soon face the same type of roadside breath test cops use to…
October 14, 2019

Grant funds Univ. of Georgia research of…

A team of researchers at the University of Georgia will be the first to study the effects of cannabis extract…
October 14, 2019

Canada’s first year of cannabis legalization going…

As the country approaches the first anniversary of legal weed on Oct. 17, a look back reveals that many important…
October 14, 2019

The Great American cannabis experiment - Cannabis…

Cannabis is legal in many U.S. states… or is it? The contradictions between state and federal law are intensifying.
October 11, 2019

Las Vegas tech companies cash in on…

Tech-based startups are looking make buying recreational marijuana easier, developing websites and programs to help consumers explore, learn and make…
October 11, 2019

West Virginia Farmers Quadrupled Their Hemp Crop…

Farmers more than quadrupled West Virginia’s industrial hemp crop this year.
October 11, 2019

Farm to freezer: Why ‘fresh-frozen’ is taking…

Fresh-freezing saves tons of cash on harvesting man-hours and drying rooms.
October 11, 2019

Advocacy Group Urges Congressional Action To Prevent…

The lack of federal regulations for the use of pesticides on marijuana plants is putting consumers at risk, the nonprofit…
October 10, 2019

On the Scene at America’s First Public…

After years of anticipation, Lowell Café has opened in West Hollywood. For the staff and the patrons, it’s a whole…
October 10, 2019

Cannabis: a remedy for the soil? -…

Hemp offers untold benefits for the soil, production processes, renewable fuel and sustainable fashion.
October 10, 2019

Next-Generation CBD Products for Athletes - Cannabis…

in Sports

Higher potencies and different means of delivery are driving innovation.