The Denver housing market is one of the hottest in the United States today. According to a report from money.cnn.com, home prices in the city have increased by double digits, and outstanding inventory has dwindled for homes. There have reportedly been instances that multiple offers leading to bid wars occurring in the area. The reason for the rise: the legalization of marijuana.
"There has been a huge bump in real estate prices due to the legalization of marijuana. It's massively pushed up raw land and industry prices," confirmed by West Realty Advisors managing partner James Paine.
The state has legalized marijuana back in 2012. Besides the legalization's effect on house prices, the said measure also contributed to the increase in job growth in the area, with many more people now wanting to move to Denver, a wtvr.com report stated.
As observed by Re/Max real estate agent Kelly Moye, "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, job needs."
The job rush is also being fueled by the growth of the tech industry in the area as well as security and HVAC industries that provide specialized services to this boom industry.
In related news, as reported by the gazette.com, Colorado voters would be asked in a referendum in November whether or not the state can retain an estimated $58 million in taxes obtained from recreational marijuana collected in the last fiscal year. The measure was signed by Colorado Gov. John Hickenlooper, placing the question on the ballot.
The basis of the tax was the voter-mandated 10 percent sales tax and 15 percent excise tax on recreational marijuana passed back in 2013. With the state allocating nearly $30 million on marijuana-related programs for the incoming year, the funds for the programs would have to come from the state's general fund and not the collected taxes on pot.
