Dive Brief:
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The legalization of marijuana in Colorado has lit up home prices in Denver.
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CNN reported that home prices have increased by double digits and home buyers have been engaging in bidding wars since the state legalized the recreational use of the drug in November 2012. One reason, real estate agents told the news organization: The state’s population is growing as people flock there so they can live where pot is legal to grow, sell, and use.
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In addition, the brand-new pot industry has created jobs for growers, dispensary workers, security professionals and even electricians and HVAC technicians who work with ventilation, according to CNN.
Dive Insight:
While legal marijuana can’t take all the credit for Denver’s housing-friendly population boom, real estate agents said more clients are renting and buying homes where they can grow marijuana plants.
Still, as attractive as a neighborhood where growers and users live may be to other growers and users, it can be a tough to sell to would-be homebuyers who don’t approve.
Another downside: Skyrocketing home prices keep housing out of reach for first-time buyers, who are looking for more affordable dwellings.
Plus, the boom could be short-lived. As other states legalize the recreational use of marijuana, some would-be Denver denizens might move elsewhere instead.
