Why Marijuana Legalization is Good for the Real Estate Market & Other Industries
While marijuana legalization remains a controversial topic, it has long been argued that marijuana market affects the real estate industry in a positive way. The marijuana market has reportedly boosted real estate in certain areas including Denver, and it also has provided jobs for people. Now, according to a recent report, a different kind of cannabis is said to be "literally holding up some properties."
According to Realtor.com, a New York company named Green Built LLC founded by James Savage, has discovered an effective and "natural" solution to "horrendous" housing conditions around the world: hemp, which is a different strain of cannabis. The company has reportedly been selling building materials made of hemp, and the company's first project is the founder's own house in Hudson Valley.
The report states that aside from hemp having many legal applications, it also doesn't produce an offensive smell, which usually turns off people about marijuana shops. Therefore, the developing market for hemp-based materials may reportedly likely get the nod of eco-conscious builders.
Meanwhile, as mentioned earlier, marijuana legalization has boosted several real estate markets in the past, the most notable of which is Denver and the whole Colorado state as well. Back in April, CNN Money reported "a huge bump in real estate prices" along with job growth in the area. Moreover, the RealNovator reports that Harvard University economics professor Jeffrey Miron has stated that the pot industry could generate $20 billion per year or more, and commercial real estate market is one of the ancillary businesses that can take advantage of such opportunity.
In related news, it seems as though the benefits of marijuana legalization extends as well to other industries, including the industrial sector. National Real Estate Investigator reports that industrial brokers have taken notice of the positive effects of marijuana market on commercial real estate. According to Barry Peek, an attorney expert on laws pertaining to legalizing and employing those in the marijuana industry, marijuana would likely be the reason for investors to enter the industrial and real estate sectors.
"In New York, where it's allowed for medical purposes, it has to be grown in an enclosed greenhouse or warehouse, and that's really impacted real estate here," he was quoted as saying.