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Getting High and Low Prices: Marijuana Dispensaries and Home Values

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  • Justin Tyndall

Abstract

Laws concerning marijuana have undergone liberalization in many North American markets, enabling the establishment of marijuana dispensaries. Local externalities generated by dispensaries may impact home values, particularly by influencing demand for the surrounding neighborhood. Recent empirical evidence has found a positive effect of dispensaries on home values. I use unique data on 84 dispensaries and 62,000 repeat home transactions from Vancouver, Canada to estimate the effect of dispensaries on home prices. I find no evidence that dispensaries increase local home values in Vancouver and some evidence of a negative price effect for homes located within 100 m of a dispensary.

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  • Justin Tyndall, 2021. "Getting High and Low Prices: Marijuana Dispensaries and Home Values," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 49(4), pages 1093-1119, December.
    • Handle: RePEc:bla:reesec:v:49:y:2021:i:4:p:1093-1119
    DOI: 10.1111/1540-6229.12302
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    References listed on IDEAS

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    Cited by:

    1. Choi, Anna & Kim, Pureum & Park, Abraham, 2023. "The effects of air quality on housing prices: Evidence from the Aliso Canyon gas leak," Journal of Housing Economics, Elsevier, vol. 62(C).
    2. Dwayne Marshall Baker, 2024. "Burden or benefit: Is retail marijuana facility siting influenced by LULU- or gentrification-related neighbourhood characteristics?," Urban Studies, Urban Studies Journal Limited, vol. 61(6), pages 1049-1070, May.
    3. Xiuming Dong & Justin Tyndall, 2021. "The Impact of Recreational Marijuana Dispensaries on Crime: Evidence from a Lottery Experiment," Working Papers 2021-1, University of Hawaii Economic Research Organization, University of Hawaii at Manoa.

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