Legalizing recreational cannabis is proving to be an economic advantage for states that have adopted it, according to a recent Clever Offers study. The research links marijuana legalization to rising property values and billions of dollars in additional tax income, showing a clear advantage over states that continue to prohibit it.
Between 2009 and 2024, property values in recreational states rose by an average of $222,598, rising from $224,677 to $447,635 according to the study. In contrast, states that continue to prohibit recreational marijuana experienced smaller increases, with prices rising from $158,273 to $320,904, a gain of $162,631. That leaves a gap of more than $60,000 in favor of states with recreational marijuana.
For instance, when Colorado legalized recreational cannabis in 2012, the typical home was valued at a little above $231,000. That figure had climbed to over $568,000 as of 2024, a 146% jump.
While higher prices have made buying harder, sellers and local governments have seen huge benefits, especially with billions in added tax money. Colorado has since become one of the most attractive places to live in the U.S.
Medical-only states also show stronger housing markets than states where cannabis is still banned entirely. Between 2009 and 2024, property values in medical states rose by nearly $195,000, while in states without legalization the increase was closer to $173,000. The difference suggests that even limited legalization can bring economic advantages.
In addition to higher home prices, cannabis sales are filling state budgets. States that taxed cannabis sales collected a combined $4 billion in 2024, with California leading the way by bringing in $1 billion.
Since beginning legal sales, Washington has collected $3.7 billion, Colorado has earned $2.9 billion, and California has pulled in $6.7 billion since its tax system launched in 2018. Medical marijuana taxes, while less widespread, also provide a boost. For example, Oklahoma collected $51 million in 2023 from taxing medical cannabis, and Louisiana brought in $2 million from its program.
Supporters argue the evidence should put to rest claims that cannabis markets harm communities. Instead, legalization appears to support stronger housing markets, safer regulated sales, and tax revenue that can be redirected into public services like infrastructure, education, and safety programs.
As states search for new ways to strengthen budgets and stimulate growth, cannabis legalization—especially for recreational use—continues to prove itself as both a financial opportunity and a community benefit.
The data suggests that states experiencing dwindling tax revenue from licensed firms like Curaleaf Holdings Inc. (CSE: CURA) (OTCQX: CURLF) need to look at the bigger picture of where else related revenue is coming from other than just focusing on the direct tax revenue from marijuana operations.
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