New study finds that dispensaries selling cannabis for social use had a positive impact on residential real estate prices in their vicinity.

In the recent years, people have seen various impact of cannabis legalization like the decrease in violent crimes, among others. One very positive and perhaps unexpected result of cannabis legalization that Americans saw is the spike in real estate prices close to dispensaries selling cannabis for social use.

“We went into the project and we weren’t really sure what to expect,” James Conklin told The Cannabist. “We thought maybe there would be a negative impact. I think our takeaway after working on the project was that we don’t see a negative effect — we do see results point to a positive effect.”

James Conklin is a real estate professor who co-authored the paper called “Contact High: The External Effects of Retail Marijuana Establishments on House Prices.” Conklin and his co-authors found following the legalization of social cannabis in 2014 in Denver, single-family homes located near dispensaries saw a spike in value. Homes within 0.1 miles of a dispensary saw increased value by 8.4 percent relative to houses located between 0.1 and 0.25 miles away. Residential properties near one particular dispensary in Denver saw their value increase by more than 8 percent.

Kerri Naslund, a realtor from Oakland, told The Cannabist she’s seen commercial property values rise in Oakland, where cannabis entrepreneurs and growers are competing for spaces.

Rick Smith, president of the Santa Clara County Association of Realtors, was surprised by the study’s finding. He said told The Cannabist dispensaries are prohibited from being too close to neighborhood schools and “typically things that have those types of restrictions do not advance home values.”