The “Green Rush” in Colorado caused a massive influx of traffic from other areas of the nation. Individuals are flocking here to access legalized marijuana.
While the legalized marijuana has resulted in massive of economic growth in Colorado, it has not come out unscathed. According to numerous studies, spikes in the real estate market and other detrimental effects couldn’t be avoided.
Let’s discuss a few of the major implications that the marijuana industry is posing on all property types – be it residential, commercial, or industrial.
Residential Property Destruction and Reduction in Value
One of the main, and most detrimental effects of marijuana legalization on the Colorado real estate market is a reduction in value. Residential properties may experience some degree of destruction and all will likely experience a reduction in value due to this.
Most landlords implement a non-smoking policy in order to “beat” legalization. Many tenants are getting around this by vaporizing. Regardless of how the substance is consumed or used, the smells can soak through walls and even stain them – much like tobacco cigarettes.
Additionally, many tenants will elect to grow their own marijuana plants. This takes an extremely high amount of water. The more water used, the more chance there is for mold to develop. If marijuana is grown or used within a home, it could impact the value of that home and make it more difficult to sell.
Dispensary Stigmas
Naturally, there are many marijuana dispensaries located throughout the State of Colorado. Some are recreational-based, while others are medical-based. While this is a productive way to ensure the legal and proper distribution of the substance, many do not want to reside near these dispensaries.
It does not matter if an apartment complex is located near a dispensary or a residential neighborhood with traditional homes – most people simply do not want to reside near these structures. As a result, the financial success of real estate endeavors is likely to be much lower.
The Industrial Manufacturing Process Poses Many Dangers
The third detrimental effect of legal marijuana on the real estate market is the fact that the industrial manufacturing process has now been confirmed to pose many dangers. One of the main is the manufacturing process of hash oil. This is the concentrated form of the substance “THC”. To make this oil, butane is required.
Since the creation of the legal pot, many industrial accidents – such as explosions and fires – have occurred. As a result, many injuries and a tremendous amount of damage has been reported.
Not only do manufacturing plants pose a danger to neighboring homes and those that reside in them, but, individuals that own and sublet industrial properties stand the chance of experience a large amount of financial loss if legal marijuana is made on their property.
Legalized Marijuana may be advertised as a productive option for medical conditions, it may be available for recreational use, and it may aid in stimulating economic growth, but, it may prove to be bad for the real estate sector in the State of Colorado.
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