Colorado is raking in on real estate right now as the prices of homes increase by double-digits and number of homes fiercely reduces. So what exactly is driving this real estate boom? CNN Money reports the answer simply as: marijuana.
The “budding” industry—pun intended—has positively affected home prices since 2012, when the state legalized marijuana. Now fast forward to 2015, you will see that Denver experienced a jump in annual home prices by a whopping 10 percent. This pins Denver to be the city with the second-largest jump on the Home Price Index, just behind San Fransisco.
Re/Max real estate agent Kelly Moye suggested that “The pot industry is creating jobs we didn’t have before. It’s brand new, it adds a whole new factor to the area; you have real estate needs, housing needs, job needs.”
Having worked in the area for more tha 24 years, Moye believes that the industry has positively impacted job creation not only for growers and dispensaries, but way beyond that.
The legalization of marijuana has helped boost existing businesses, such as security and HVAC companies.
“Electricians have grown from mom and pops to big-time electric companies,” J.P Speers, an agent from Berkshire Hathaway Home Services, said.
Besides the growing job opportunities, plenty of newbie Colorado residents have flocked to the area for other reasons to use cannabis, including for medical reasonings. One real estate agent helped a mother, who moved to Colorado because marijuana is legal in the state and needs it for medicinal reasons, find an apartment. Another agent said he helped a married couple looking to start a marijuana growing operations, find a location for their new home.
So just how long will the real estate boom last? CNN Money reported that Moye thinks the market has room for growth for the next five to seven years. However, if more states decide to legalize marijuana, it could take away from Colorado’s real estate growth.
How do you feel about the legalization of marijuana? Do you think your state could benefit from the legalization? Share your thoughts with us in the comments below.