marijuana leaves

Call it the “green rush:” Legalizing weed in Colorado caused a 6% surge in house prices in 2015

6%

The US is seeing a “green wave,” as eight states have legalized recreational marijuana since 2012. Now, researchers are looking into the effects of legalization—from how many tourists it can attract to how much it could cost the health system.

Published   |  Photo by Reuters/Chris Wattie
marijuana leaves
6%

A study by researchers with the University of Mississippi, published earlier this year on the journal Economic Inquiry, looked at how housing prices changed in Colorado after it legalized weed in 2014.

marijuana leaves
6%

It found that houses were 6%, or $15,600, more expensive in areas of the state where weed was legal by mid-2015 than in areas that hadn’t yet implemented legalization by that time.

marijuana leaves
6%

The study shows that prices went up not because developers weren’t building houses in those areas, but because more people were looking for houses there.

marijuana leaves
6%

While many probably moved there to use the drug, many were likely incited by what the researchers termed a “green rush”—the business and employment opportunities created by legalization.

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