States with legal cannabis see higher home values, but Illinois lags behind

(The Center Square) – Home values in states with legal recreational cannabis have outpaced home values in other states, a new study shows, but Illinois lags behind all other legal pot states.

Illinois is among 23 states and the District of Columbia that have legalized recreational marijuana.

Researcher Matt Brannon with Clever Real Estate said the data shows that from 2014 to 2023, home values increased an average of almost $50,000 more in states with recreational cannabis compared to states without it, but Illinois isn’t seeing as much of an increase.

“It just happens that Illinois has not benefited as much as other states, but there could be other reasons behind that,” Brannon said. “We did a study recently that found that Illinois is the state that most people are moving away from in the country in the first six months of 2023.”

While homes have appreciated during that time period in Nevada by 132%, home values in Illinois increased by only 58%.

The study, in collaboration with Leafly, found of the 10 states with the largest increases in home values, seven have legalized recreational cannabis. Meanwhile, of the 10 states with the smallest increases in home values, including Illinois, the nine others have not legalized recreational cannabis.

Brannon attributes the appreciation of home values and nearby cannabis dispensaries to robust economic activity and thousands of new jobs.

“When that many new jobs are being created, more people are moving to new areas, businesses are hiring, and it’s not just cannabis businesses themselves that are hiring, it creates a ripple effect,” Brannon said.

The study notes that the recreational cannabis market is projected to generate about $25 billion in sales by the end of 2023, $2 billion alone in Illinois.

States with just medicinal cannabis have seen home values climb $166,609 since 2014, $29,289 more than states without medicinal cannabis.