Investing

How real estate investors can cash in on the cannabis boom

  • The key to residential real estate investing is to target smaller cities in need of economic revitalization where home price appreciation is likely to be the highest post-legalization.

Future-Proof: Navigate Threats, Seize Opportunities at ICNY 2018 | Jan 22-26 at the Marriott Marquis, Times Square, New York

As the legal cannabis market is set to nearly triple over the next five years to $22.6 billion, the largest horticultural Green Rush since the Dutch went wild over tulips back in the 1630s is now propelling home prices to a new high in states that have recently legalized this budding industry. In some instances, some land prices in certain California counties such as Humboldt have shot up tenfold over the past two years alone, and a recent joint study by University of Nevada and University of Mississippi shows that cities and towns in Colorado that adopted retail marijuana laws following state approval of recreational use enjoyed a 6 percent increase in housing value tied directly to that statute alone after separating legalization’s influence from other factors. Legal cannabis is now one of the fastest growing consumer industries on record in the past 50 years, and the industry, not surprisingly, is also set to surpass manufacturing in job creation by 2020 according to Forb...