The Impact of Legal Marijuana on Washington Real Estate

Legal Weed Has Grown Washington’s Real Estate Industry

In 2012, Washington became one of the first states to legalize recreational marijuana. Over the past decade, weed has impacted everything from healthcare and tax collection to, you guessed it, real estate. Here’s how legal marijuana has kept Washington’s real estate industry green over the years.

Property Values

As more and more states legalize recreational marijuana, the impact on property values near dispensaries is a common concern. The good news is that there doesn’t seem to be much change, particularly in long-legalized markets like Washington state. In fact, a recent survey by the National Association of REALTORS^® found that 60% of members reported no change in property values, 8% reported a slight increase, and 4% reported a significant increase. Between the rise of cannabis tourism and the ever-increasing popularity of marijuana (seniors aged 55-64 had a whopping 455% increase in usage between 2002 and 2014), is it any wonder that properties down the street from the dispensary are still in demand?

Homeowner Associations

Of course, as soon as the legal hoops that at-home weed smokers had to jump through were dissolved, another set of restrictions appeared. Most homeowner associations have developed marijuana-specific rules and regulations since Washington’s legalization in 2012. In markets where medical and legal weed were legalized before 2016, including Washington, only 9% of respondents were allowed to grow at home, although a new bill could spark change for home growers across the state. Only 3% reported smoking allowances in common areas, and 1% reported growing in exposed areas. Most members reported restrictions across the board, illustrating just how HOA’s have responded to the legalization of marijuana throughout the last decade.

Selling a Grow House

Marijuana legalization also opened up a whole new field for budding real estate agents. The NAR survey also found that in states that legalized more than three years ago, nearly 25% of REALTORS^® have successfully sold a grow house, or a property used specifically for the cultivation of marijuana. Of that figure, 75% reported that the grow house was not hard to sell, and 85% had no title issues. Perhaps the perfect symbol for marijuana in real estate, listing grow houses could be the natural next step for the industry at large.

Grow Your Career

Whether you’re selling a grow house or showing a home near a dispensary, understanding weed’s impact on Washington real estate can help you serve your market that much better. Take some time to explore the real estate-related effects of legalization and grow your career, perhaps with our comprehensive Marijuana in Real Estate course. Your competition is sure to be green with envy.