Dispensaries result in rise of value in nearby residential properties

Logan Lowrey-Rasmussen

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A study from the Wisconsin School of Business at the University of Wisconsin-Madison found residences in Denver located near dispensaries gained property value since social cannabis legalization.

The study reported single family residences within 0.1 miles of social cannabis dispensaries saw an 8.4 percent increase in property value, compared to residences located up to 0.25 miles away from the store whose property value were not affected.

“The presence of retail marijuana establishments clearly had a short-term positive impact on nearby properties in Denver,” said Dr. Moussa Diop, one one of the researchers leading the study, said. “This suggests that in addition to the sales and business taxes generated from the retail marijuana industry, municipalities may experience an increase in property taxes legislatures across the country.”

The study did not identify the specific reasons why property near retail dispensaries gained value quicker than comparative samples, but a report from Realtor.com predicted price increases were partly due to the state’s population surge from 2014 to 2015.