In Denver home prices have increased by double digits, inventory has dropped dramatically and various offers with bidding wars have become common. One factor raising the demand: marijuana. The pot industry has affected the value of homes since the state legalized pot back in 2012.
“There has been a huge bump in real estate prices due to the legalization of marijuana,” according to James Paine, a managing partner at West Realty Advisors. “It’s massively pushed up a raw land and industry prices.”
This past March Denver went through the second largest rise in annual home prices at 10% just behind San Francisco, in reference to the S&P/Case-Shiller Home Price Index.
While cannabis legalization is not the only factor causing the housing market to rise, it has contributed to the job growth in the area that has people moving to Denver.”The pot industry is creating jobs we didn’t have before,” stated Kelly Moye, a Re/Max real estate agent. “It’s brand new, it adds a whole new factor to the area; you have real estate needs, housing needs, job needs.”
The marijuana industry has developed employment opportunities beyond growers and marijuana shops. Legal cannabis has also been a boon for existing businesses such as security and HVAC companies who work with the new “green” businesses. “Electricians have grown from mom and pops to big-time electric companies,” stated J.P. Speers, an agent at Berkshire Hathaway Home Services.
Denver and its nearby areas have as well become a hot spot for the tech industry, adding to the job rush. “It’s fairly affordable, at least for now,” stated Moye. “The quality of life is great and employers are bringing their employees here.”
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