The prices of homes in Denver have risen more steeply than in any other city. A rise in real estate values is often attributed to the tech sector where jobs tend to pay high that may usually result a rise in prices of real estate. But the real reason perhaps for the rise is the legalization of marijuana.
It was reported that "In 2014, Colorado marijuana sales totaled $700 million, and the state expects to collect $94 million annually in cannabis taxes by 2016."
Managing partner at West Realty Advisors, James Paine said "There has been a huge bump in real estate prices due to the legalization of marijuana."
According to Realtor, the median home price in Denver is $350,500 up by 15.9% from last year. Vacancy rates in residential and commercial are all down. Whether it's a coincidence or not, it's not easy to separate the boom in pot from the growth of other industries in Denver.
While some residents are worried about the affordability of homes, others are basking in the glow of the real estate market.
After Denver legalized marijuana that resulted to many people moving there, the average house price rose by $40,000 in a year.
The influx of people to Denver has led to bidding wars and lack of availability of homes.
Daily Mail said the legalization of marijuana has contributed a sudden rise of housing prices in Denver with the average property now costing $350,500.
The law change that went into effect at the beginning of 2014, has seen thousands of pot-smokers move to the city that resulted a major impact on Denver's job market - with many profiting from legalizing the use of marijuana.
Real estate expert James Paine has said '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.'
