The Effect of Legalizing Retail Marijuana on Housing Values: Evidence From Colorado

Cheng, Cheng; Mayer, Walter J.; Mayer, Yanling G.

doi:10.1111/ecin.12556

Cited by 35 publications

(37 citation statements)

References 46 publications

(57 reference statements)

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“…To identify the effect, they use variation in time of adoption of Amendment 64 by municipalities along with municipality and time fixed effects. Even though the amplitude of the effect on house prices they document is still positive, but slightly smaller than our findings, Cheng, Mayer and Mayer () cover larger and more heterogeneous areas. In contrast, our study focuses on one city in Colorado (Denver).…”

Section: Literature Reviewcontrasting

confidence: 95%

“…In contrast to the documented positive effect of retail marijuana on residential property values, Billings, Johnson and Villupuram () documents a negative spillover effect of legal marijuana business establishment on commercial rents in the near vicinity in Denver. This very localized effect on nearby commercial space is not necessarily incompatible with the positive effect on housing prices documented in Cheng, Mayer and Mayer () and this article for various reasons. First, Billings, Johnson and Villupuram () deal with the spillover effect on commercial properties, whereas we are examining residential properties.…”

Section: Literature Reviewsupporting

confidence: 63%

“…But in a parallel study, Cheng, Mayer and Mayer () explore the effect of retail marijuana legalization in Colorado on house prices at the municipality level. Using a difference‐in‐differences approach, Cheng, Mayer and Mayer () document a 6% increase in housing values on average in municipalities that allow retail marijuana sales. To identify the effect, they use variation in time of adoption of Amendment 64 by municipalities along with municipality and time fixed effects.…”

Section: Literature Reviewmentioning

confidence: 99%

“…While at first glance this estimate may seem large, our results are very much in line with existing research concerning the external effects of RML. In a related paper, Cheng, Mayer and Mayer () find an approximately 6% increase in house prices for municipalities in Colorado that adopted RML. Whereas Cheng, Mayer and Mayer () are looking at a municipality level effect, our analysis is more micro in nature.…”

Section: Introductionmentioning

confidence: 95%

“…In a related paper, Cheng, Mayer and Mayer () find an approximately 6% increase in house prices for municipalities in Colorado that adopted RML. Whereas Cheng, Mayer and Mayer () are looking at a municipality level effect, our analysis is more micro in nature. We are measuring the effect of an existing store's conversion to retail on local property values.…”

Section: Introductionmentioning

confidence: 95%

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Contact High: The External Effects of Retail Marijuana Establishments on House Prices

Conklin

Diop

2017

Real Estate Economics

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Using publicly available data from the city of Denver and the state of Colorado, this study examines the effects of retail conversions (conversions from medical marijuana to retail marijuana stores) on neighboring house values in Denver, CO. The study period reflects a time before and after retail marijuana sales became legal in Colorado in 2014. Using a difference‐in‐differences approach, we compare houses that were in close proximity to a conversion (within 0.1 miles) to those that are farther away from a conversion. We find that single‐family residences close to a retail conversion increased in value by approximately 8% relative to houses that are located slightly farther away. We perform a battery of robustness checks and falsification tests to provide additional support for this finding. To our knowledge, this is the first study to examine at a microlevel the highly localized effect of retail marijuana establishments on house prices and hope that it can contribute to the debate on retail marijuana laws.

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Section: Literature Reviewcontrasting

confidence: 95%

Section: Literature Reviewsupporting

confidence: 63%

Section: Literature Reviewmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 95%

Section: Introductionmentioning

confidence: 95%

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Contact High: The External Effects of Retail Marijuana Establishments on House Prices

Conklin

Diop

2017

Real Estate Economics

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Health, safety, and socioeconomic impacts of cannabis liberalization laws: An evidence and gap map

Sevigny,

Greathouse,

Medhin

2023

Campbell Systematic Reviews

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BackgroundGlobally, cannabis laws and regulations are rapidly changing. Countries are increasingly permitting access to cannabis under various decriminalization, medicalization, and legalization laws. With strong economic, public health, and social justice incentives driving these domestic cannabis policy reforms, liberalization trends are bound to continue. However, despite a large and growing body of interdisciplinary research addressing the policy‐relevant health, safety, and socioeconomic consequences of cannabis liberalization, there is a lack of robust primary and systematic research that comprehensively investigates the consequences of these reforms.ObjectivesThis evidence and gap map (EGM) summarizes the empirical evidence on cannabis liberalization policies. Primary objectives were to develop a conceptual framework linking cannabis liberalization policies to relevant outcomes, descriptively summarize the empirical evidence, and identify areas of evidence concentration and gaps.Search MethodsWe comprehensively searched for eligible English‐language empirical studies published across 23 academic databases and 11 gray literature sources through August 2020. Additions to the pool of potentially eligible studies from supplemental sources were made through November 2020.Selection CriteriaThe conceptual framework for this EGM draws upon a legal epidemiological perspective highlighting the causal effects of law and policy on population‐level outcomes. Eligible interventions include policies that create or expand access to a legal or decriminalized supply of cannabis: comprehensive medical cannabis laws (MCLs), limited medical cannabidiol laws (CBDLs), recreational cannabis laws (RCLs), industrial hemp laws (IHLs), and decriminalization of cultivations laws (DCLs). Eligible outcomes include intermediate responses (i.e., attitudes/behaviors and markets/environments) and longer‐term consequences (health, safety, and socioeconomic outcomes) of these laws.Data Collection and AnalysisBoth dual screening and dual data extraction were performed with third person deconfliction. Primary studies were appraised using the Maryland Scientific Methods Scale and systematic reviews were assessed using AMSTAR 2.Main ResultsThe EGM includes 447 studies, comprising 438 primary studies and nine systematic reviews. Most research derives from the United States, with little research from other countries. By far, most cannabis liberalization research focuses on the effects of MCLs and RCLs. Studies targeting other laws—including CBDLs, IHLs, and DCLs—are relatively rare. Of the 113 distinct outcomes we documented, cannabis use was the single most frequently investigated. More than half these outcomes were addressed by three or fewer studies, highlighting substantial evidence gaps in the literature. The systematic evidence base is relatively small, comprising just seven completed reviews on cannabis use (3), opioid‐related harms (3), and alcohol‐related outcomes (1). Moreover, we have limited confidence in the reviews, as five were appraised as minimal quality and two as low quality.Authors’ ConclusionsMore primary and systematic research is needed to better understand the effects of cannabis liberalization laws on longer‐term—and arguably more salient—health, safety, and socioeconomic outcomes. Since most research concerns MCLs and RCLs, there is a critical need for research on the societal impacts of industrial hemp production, medical CBD products, and decriminalized cannabis cultivation. Future research should also prioritize understanding the heterogeneous effects of these laws given differences in specific provisions and implementation across jurisdictions.

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Marijuana legalization and household spending on food and alcohol

2021

Health Economics

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Utilizing the Consumer Expenditure Interview Survey from 2005 to 2019, I study spending on food and alcohol following recreational marijuana law (RML). Exploiting differences in the timing of the passage of RMLs and employing two-way fixed-effects methods, I find that households located in states adopting these laws increase their quarterly spending on food, which is driven mainly by spending on food consumed away from home. Legalization of recreational marijuana also leads to increased quarterly spending on alcohol. These findings suggest a complementarity between food, alcohol, and marijuana.

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The Effect of Legalizing Retail Marijuana on Housing Values: Evidence From Colorado

Cited by 35 publications

References 46 publications

Contact High: The External Effects of Retail Marijuana Establishments on House Prices

Contact High: The External Effects of Retail Marijuana Establishments on House Prices

Health, safety, and socioeconomic impacts of cannabis liberalization laws: An evidence and gap map

Marijuana legalization and household spending on food and alcohol

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