5 Ways the Legalization of Marijuana Can Impact Home Prices in Colorado
1. Not all of Colorado has adopted in the law. The state law allows local governments the right to regulate. Many of the counties in Colorado have passed bans on marijuana retailers or have delayed their decision and placed a hold on the law. As you can see from the map below, there are not that many areas of Colorado that are allowing recreational sales. For many Colorado residents, the impact of the new law is not affecting them in any way at this time. But that could change at any moment so residents should know what they support and lobby for or against. 2. For the counties that currently allow the sale of marijuana or for the counties that could later allow it, the growing operations must take place in an industrial zoned area. Special licenses are required for grow operations and the business needs to be run like any other business. This means they will pay hefty taxes, which could help the local economy, thus raising home values. 3. Many homeowners are concerned with grow houses. The new law allows in home cultivation of up to six plants. While you may never know if your neighbor is cultivating marijuana in their home or not, there are some common byproducts that relate to growing marijuana. An increase in traffic, both vehicle and foot, in your neighborhood is one of the most common. 4. On the same topic of grow homes, potential buyers will have a new set of inspection services to be on the lookout for. Many growers modify the electrical wires in their home to allow strong heat lamps to work properly — in fact, some even go as far as to bypass the electricity in their home all together and tap straight into the electrical lines to bypass meters. Grow houses typically have holes cut in the ceiling for ventilation and there is also the widespread mold issue due to the moisture that is needed for the plants. Potential buyers should have inspections done by certified inspection services that are skilled in spotting grow houses. 5. Finally, will the influx of legal drugs cause property values to go down, go up or stay the same? This answer is a tricky one. The law is new so we don’t expect to see any changes in the near future. We do know that since the new law has passed we have seen an influx of travelers to the area, as well as growth in the property rental arena. This is all good for the local economy and if it continues, then we should all see a positive outcome.