Home Values Climb $60,000 Higher in States With Legal Recreational Cannabis (2025 Data)

Home Values in Recreational States | Home Values in Medicinal States | Largest Home Value Increases | Home Value Predictions in Newly Legalized States | Tax Revenue and Cannabis

As the green wave of cannabis legalization sweeps across the country, some Americans are saying "not in my backyard." NIMBY neighbors argue that legalizing marijuana would lead to more crime and lower property values, but new research from Clever Offers helps weed out that myth.

Instead of going up in smoke, home values are rising sky high. Home values in states with recreational cannabis have increased $60,327 more than in states where it is illegal, according to an analysis of property values from 2009 to 2024. 

Cannabis legalization is not the sole driver of property values, but it is a factor that is increasingly baked into the equation. States that have given it the green light reap millions in tax revenue that is reinvested into public programs that make neighborhoods more desirable — and more valuable — to home buyers. 

Demand for homes in cannabis-friendly states has helped fuel a $222,958 rise in property values since 2009, while homes in states without recreational cannabis have appreciated just $162,631 in that same time frame.

In 2024, the average home in a recreational state was worth $447,635 — about 39% more than the typical home value of $320,904 in states where cannabis cannot be used recreationally. 

Homes are worth more in recreational states, but any form of legal cannabis can give property values a boost. From 2009 to 2024, home values increased $22,185 more in states where medical marijuana is legal than in states where it is illegal.

Despite lingering stereotypes and outdated fears, misconceptions about cannabis legalization and its effect on the housing market are finally fading. Cannabis isn’t dragging down home values. It's helping them grow, and states that have yet to legalize it are missing out on thousands in pot-ential home value appreciation.

State	Legalization Status	Home Value (2009)	Home Value (2024)	Home Value $ Change	Home Value % Change
United States	-	$190,824	$383,027	$192,203	101%
Alabama	Medical Only	$129,996	$233,462	$103,466	80%
Alaska	Recreational Legalized	$248,788	$371,351	$122,563	49%
Arizona	Recreational Legalized	$167,239	$440,294	$273,055	163%
Arkansas	Medical Only	$122,521	$217,167	$94,646	77%
California	Recreational Legalized	$311,992	$804,512	$492,520	158%
Colorado	Recreational Legalized	$231,356	$568,130	$336,774	146%
Connecticut	Recreational Legalized	$265,449	$421,776	$156,326	59%
Delaware	Recreational Legalized	$250,046	$400,829	$150,782	60%
District of Columbia	Recreational Legalized	$370,780	$624,377	$253,597	68%
Florida	Medical Only	$152,100	$395,352	$243,252	160%
Georgia	Medical CBD Oil Only	$144,084	$339,653	$195,569	136%
Hawaii	Medical Only	$411,996	$858,244	$446,247	108%
Idaho	Illegal	$173,850	$474,159	$300,309	173%
Illinois	Recreational Legalized	$173,195	$277,150	$103,955	60%
Indiana	Medical CBD Oil Only	$116,666	$247,195	$130,529	112%
Iowa	Medical CBD Oil Only	$122,074	$224,612	$102,538	84%
Kansas	Illegal	$122,224	$237,995	$115,771	95%
Kentucky	Medical CBD Oil Only	$111,773	$218,003	$106,230	95%
Louisiana	Medical Only	$160,678	$207,497	$46,820	29%
Maine	Recreational Legalized	$184,534	$410,791	$226,257	123%
Maryland	Recreational Legalized	$270,223	$431,442	$161,220	60%
Massachusetts	Recreational Legalized	$314,577	$654,704	$340,127	108%
Michigan	Recreational Legalized	$105,695	$254,562	$148,866	141%
Minnesota	Recreational Legalized	$178,829	$344,216	$165,387	92%
Mississippi	Medical Only	$118,065	$187,101	$69,036	58%
Missouri	Recreational Legalized	$134,473	$256,870	$122,397	91%
Montana	Recreational Legalized	$187,728	$459,340	$271,611	145%
Nebraska	Illegal	$132,574	$269,741	$137,167	103%
Nevada	Recreational Legalized	$157,722	$454,215	$296,493	188%
New Hampshire	Medical Only	$219,324	$492,562	$273,238	125%
New Jersey	Recreational Legalized	$313,097	$557,527	$244,429	78%
New Mexico	Recreational Legalized	$180,420	$311,693	$131,272	73%
New York	Recreational Legalized	$265,917	$492,970	$227,053	85%
North Carolina	Illegal	$163,183	$337,022	$173,839	107%
North Dakota	Medical Only	$166,885	$275,002	$108,117	65%
Ohio	Recreational Legalized	$119,847	$234,831	$114,984	96%
Oklahoma	Medical Only	$113,653	$213,879	$100,226	88%
Oregon	Recreational Legalized	$234,305	$510,131	$275,826	118%
Pennsylvania	Medical Only	$164,838	$276,538	$111,700	68%
Rhode Island	Recreational Legalized	$233,248	$483,388	$250,141	107%
South Carolina	Illegal	$151,164	$302,701	$151,537	100%
South Dakota	Medical Only	$147,776	$313,513	$165,737	112%
Tennessee	Medical CBD Oil Only	$143,220	$331,717	$188,497	132%
Texas	Medical CBD Oil Only	$142,732	$309,797	$167,065	117%
Utah	Medical Only	$216,048	$536,420	$320,372	148%
Vermont	Recreational Legalized	$217,661	$403,231	$185,570	85%
Virginia	Recreational Legalized	$225,886	$406,208	$180,322	80%
Washington	Recreational Legalized	$273,924	$616,338	$342,414	125%
West Virginia	Medical Only	$98,470	$165,684	$67,214	68%
Wisconsin	Medical CBD Oil Only	$168,863	$321,010	$152,148	90%
Wyoming	Illegal	$200,339	$357,481	$157,142	78%

Home Values Climb Higher in States That Legalize Recreational Weed

The recreational cannabis market has bloomed since Washington and Colorado became the first states to legalize it in 2012. More than a decade later, 24 states and the District of Columbia have followed suit. 

Legalizing recreational cannabis can have a wide range of economic benefits, from business growth to increased consumer spending. One of the most notable impacts is a rapid rise in home values that outpaces the growth in states where recreational cannabis is prohibited. 

A typical home in recreational states was worth $447,635 in 2024 — up from $224,677 in 2009. That's an increase of $222,958 in 15 years.

In states where recreational cannabis is illegal, home values grew just $162,631 over that same time period — increasing from $158,273 in 2009 to $320,904 in 2024.

From 2009 to 2024, home values increased $60,327 more in states where marijuana is currently legal for recreational use, compared to states where it is illegal.

Although home value growth has never been equal between recreational and non-recreational states, the gap is widening as legalization becomes more common and cannabis becomes more popular — culturally and economically. 

In 2009, homes in current recreational states were worth $66,404 more than homes in non-recreational states. Now they're worth $126,731 more — nearly twice the amount from 15 years ago.

Home Values Lag in States Without Medical Marijuana

Home values are higher in states where recreational cannabis is legal, but medical-only states still have higher home values than those that prohibit any type of marijuana use. 

To date, 44 states and the District of Columbia have legalized some form of medical marijuana. 

In those states, home values climbed $194,813 from 2009 to 2024. In states where medical marijuana remains illegal, home values rose just $172,628 in the same time period. 

That means home values have increased $22,185 more in medicinal states than in illegal ones.

Like recreational states, the gap in home value growth between medicinal and non-medicinal states has widened over time. 

In 2024, homes in states with medical marijuana were worth $390,117 —  $60,267 more than the typical home value of $329,850 in states without medicinal cannabis.

Fifteen years ago, states that currently have legal medical marijuana were worth just $38,082 more than those that currently do not have medicinal programs.

Top States for Home Value Growth Since 2009

Real estate markets are buzzing in states with legal cannabis. Of the 10 states with the highest jump in home values, nine have legalized cannabis in some form.

Seven states have legalized cannabis for recreational use, while three have legalized it solely for medicinal use. Idaho is the only state in the top 10 with no form of legal cannabis.

States With Highest Home Value Growth	State	Legalization Status	Home Value (2009)	Home Value (2024)	Home Value $ Change	Home Value % Change
1	California	Recreational Legalized	$311,992	$804,512	$492,520	158%
2	Hawaii	Medical Only	$411,996	$858,244	$446,247	108%
3	Washington	Recreational Legalized	$273,924	$616,338	$342,414	125%
4	Massachusetts	Recreational Legalized	$314,577	$654,704	$340,127	108%
5	Colorado	Recreational Legalized	$231,356	$568,130	$336,774	146%
6	Utah	Medical Only	$216,048	$536,420	$320,372	148%
7	Idaho	Illegal	$173,850	$474,159	$300,309	173%
8	Nevada	Recreational Legalized	$157,722	$454,215	$296,493	188%
9	Oregon	Recreational Legalized	$234,305	$510,131	$275,826	118%
10	New Hampshire	Medical Only	$219,324	$492,562	$273,238	125%

High home values tend to go hand in hand with recreational weed, while states with limited legalization —  for medical use only — typically experience slower home price growth. 

Of the 10 states with the smallest increase in home values, nine have legalized cannabis for medical use only. Just one has legalized recreational cannabis.

Louisiana, a medical-only state, had the smallest increase in home values, with prices rising just $46,820 from 2009 to 2024. By contrast, California saw the most growth during that time period. Home values soared $492,520 — more than 10x Louisiana's home value gains.  

Illinois is the only recreational state in the bottom 10. Legal weed may be a perk of living in the state, but high property taxes are driving away new and current residents — limiting home appreciation even with the economic lift that typically comes from cannabis legalization. 

States With Lowest Home Value Growth	State	Legalization Status	Home Value (2009)	Home Value (2024)	Home Value $ Change	Home Value % Change
1	Louisiana	Medical Only	$160,678	$207,497	$46,820	29%
2	West Virginia	Medical Only	$98,470	$165,684	$67,214	68%
3	Mississippi	Medical Only	$118,065	$187,101	$69,036	58%
4	Arkansas	Medical Only	$122,521	$217,167	$94,646	77%
5	Oklahoma	Medical Only	$113,653	$213,879	$100,226	88%
6	Iowa	Medical CBD Oil Only	$122,074	$224,612	$102,538	84%
7	Alabama	Medical Only	$129,996	$233,462	$103,466	80%
8	Illinois	Recreational Legalized	$173,195	$277,150	$103,955	60%
9	Kentucky	Medical CBD Oil Only	$111,773	$218,003	$106,230	95%
10	North Dakota	Medical Only	$166,885	$275,002	$108,117	65%

Home Values Predicted to Rise Nearly $55,000 in Newly Legalized States

States that have recently rolled out recreational cannabis are likely to see home values rise in the years ahead. 

Among the most recent adopters, Ohio, Minnesota, and Delaware are likely candidates for faster property appreciation — especially compared to states that prohibit recreational use. Our model predicts home values will rise $54,419 in those states over the next five years, compared to $43,642 in states that have not legalized recreational cannabis.

However, by waiting to legalize, Ohio, Minnesota, and Delaware may have missed out on years of stronger home value growth.

Washington and Colorado — the first states to legalize cannabis for recreational use in 2012 — have experienced some of the highest home value growth in the U.S. Washington ranks third in property appreciation, with home values increasing $384,289 since 2012. Colorado ranks fifth, with home values growing $334,015 in the same time period.

If Ohio, Minnesota, and Delaware had legalized recreational cannabis at the same time as Washington and Colorado, home values could have increased $257,431 on average in those three states since then. Instead, the actual gain during that time period was nearly $97,000 less — averaging just $160,541. 

States With Legal Cannabis Collect $4 Billion in Tax Revenue

States with recreational marijuana are seeing green on two fronts: They collect more money from increased property taxes as home values rise, and they earn additional income from taxes on retail cannabis sales. 

The 23 states that taxed cannabis sales in 2024 collected a cumulative $4 billion in tax revenue — about $177 million per state on average.

States with legal recreational cannabis contributed nearly all of the $4 billion total, with California alone generating $1 billion — the most of any state. 

Tax revenue from medical-only markets is minimal, with few states wanting to burden patients with additional health care costs. However, tax policies vary by state, and some — such as Oklahoma and Louisiana — have earned significant income through taxing medical marijuana sales.

Oklahoma collected more than $51 million in cannabis tax revenue in 2024, while Louisiana brought in more than $2 million — adding a combined $53 million to the $4 billion total. 

Communities reap the rewards when these taxes are reinvested at the local level. Funds often go toward education, infrastructure, public safety, and substance abuse treatment programs that improve residents' quality of life, increase demand, and send home values soaring even higher.

Rank	State	Legality Status	Total Tax Revenue From Cannabis Sales (2024)	Tax Revenue Use
1	California	Recreational Legalized	$1,009,294,380	Regulatory and Research Costs; Youth Anti-Drug Programs; Environmental Programs; Public Safety
2	Illinois	Recreational Legalized	$457,284,195	General Fund; Illinois Recover, Reinvest, and Renew Program; Mental Health and Substance Abuse; Local Government; Public Education
3	Washington	Recreational Legalized	$454,742,324	Health Care; General Fund; Local Governments; State Programs
4	Michigan	Recreational Legalized	$331,000,000	Municipalities; Counties; Statewide School Aid Fund; Michigan Transportation Fund
5	Arizona	Recreational Legalized	$289,879,253	Community Colleges; Municipal Police; Fire Districts; The Highway User Fund; The Justice Reinvestment Fund
6	Massachusetts	Recreational Legalized	$272,445,292	General Fund; Massachusetts Bay Transportation Authority; School Building Authority
7	Colorado	Recreational Legalized	$255,364,952	Local Governments; State Government; General Fund; Public School Fund; Marijuana Cash Tax Fund
8	New York	Recreational Legalized	$158,423,000	Education; Community Grants Reinvestment Fund; Drug Treatment and Public Education Fund
9	Oregon	Recreational Legalized	$150,898,047	State School Fund; Mental Health, Alcoholism and Drug Services; Oregon State Police; Oregon Health Authority; Cities; Counties
10	Nevada	Recreational Legalized	$120,537,777	Rainy Day Fund
11	Missouri	Recreational Legalized	$84,009,800	Public Defenders; Drug Addiction Treatment; Veterans
12	Maryland	Recreational Legalized	$72,540,000	Community Reinvestment and Repair Fund; Cannabis Public Health Fund; Cannabis Business Assistance Fund; General Fund
13	New Jersey	Recreational Legalized	$61,019,060	Regulation and Enforcement; Public Safety; General Fund
14	Montana	Recreational Legalized	$57,387,810	General Fund; Heart Fund; Veterans and Surviving Spouses; Montana State Parks; Montana Trail Stewardship Grant Program; Habitat Legacy Account
15	Ohio	Recreational Legalized	$53,995,086	Cannabis Social Equity and Jobs Fund; Host Community Cannabis Fund; Substance Abuse and Addiction Fund; Division of Cannabis Control and Tax Commissioner Fund
16	New Mexico	Recreational Legalized	$53,594,444	General Fund; Communities
17	Oklahoma	Medical Only	$51,013,447	Medical Marijuana Tax Fund
18	Maine	Recreational Legalized	$40,950,938	Adult Use Marijuana Public Health and Safety Fund; General Fund
19	Connecticut	Recreational Legalized	$32,773,606	General Fund; Social Equity and Innovation Fund; Prevention and Recovery Services Fund
20	Vermont	Recreational Legalized	$27,849,252	Education
21	Alaska	Recreational Legalized	$27,251,831	General Fund; Department of Public Safety; Health and Social Services; Department of Corrections; Marijuana Education Fund
22	Rhode Island	Recreational Legalized	$20,514,483	Grants; Job Training; Jail Diversion; Drug Rehabilitation; Education Workforce Development
23	Louisiana	Medical Only	$2,309,603	Community and Family Support System Fund; Department of Agriculture and Forestry

Early Adopters of Legal Cannabis Reap the Highest Tax Revenue

States that legalized recreational cannabis early on have, predictably, generated far more tax revenue than those that decided to wait or pass on puffing. 

As the first states to legalize recreational cannabis, Washington and Colorado have had more than a decade to rack up revenue — generating more from weed sales than most other states. 

Since taxation on cannabis sales began in 2015, Washington has collected the second-highest amount in total taxes ($3.7 billion). Meanwhile, Colorado has earned the third-highest amount ($2.9 billion) since the state implemented the cannabis tax in 2014.

Some states may have a head start, but time is not the only factor that determines tax revenue earnings. A state's population, market size, and tax rate allow some late adopters to bring in much more revenue from recreational cannabis.

Although California didn't start taxing cannabis sales until 2018, it has collected $6.7 billion in tax revenue — the most of any state. 

Likewise, Missouri didn't implement its cannabis tax until 2023. Yet it has already made $211 million in revenue — more than some states that legalized marijuana much earlier. Maine, for example, has made only $135 million despite taxing recreational cannabis sales five years earlier than Missouri.

As state sales tax revenue declines, even modest new streams of income can give states a boost. By delaying cannabis legalization, states risk leaving a lot of money on the table.

Ohio didn't start taxing recreational cannabis sales until 2024 — earning about $54 million since then. Assuming the same rate of growth, Ohio could have made $540 million if it legalized recreational weed 10 years earlier at the same time as Colorado. 

Methodology

To determine home values, Clever Offers used the Zillow Home Value Index at the state level. Legalization information comes from DISA Global Solutions and MJBizDaily, while overall population information comes from the World Population Review. Tax revenue information is from The Motley Fool and the National Council of State Legislatures.

About Clever Offers

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