Has Cannabis Legalization Affected the value of your home?

Has Cannabis Legalization Affected the value of your home?

With cannabis now legal across the country, it represents a foundational change in Canadian drug policy that will have trickle-down effects on several areas of Canadians’ lives, including real estate- and cannabis legalization and land values are more connected than you think.

Have you ever considered how cannabis legalization would affect the value of your residence?

Among the standout issues in Bill C-45, aka the Cannabis Act, is home farming. While the federal legislation lets you develop to 4 cannabis plants at home, there are several restrictions that vary across the country depending on the state or territory you live.

By way of instance, Manitoba and Quebec are banning home cultivation altogether while at BC, your homegrown cannabis plants cannot be visible from the exterior.

If you rent, you may face additional limitations (up to a ban on smoking and growing cannabis at home) depending on the arrangement with your landlord.

Zoocasa, a real estate search engine owned by Rogers, researched 1,300 Canadians on issues like smoking and growing cannabis at home, living near legal cannabis retailers, and the rights of landlords and tenants in terms of cannabis.

High Level Findings

The report found that:

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O   15% of respondents indicated they would consider in-home cannabis cultivation

O   52% of respondents say that they ’d be less inclined to consider Certain homes for sale if they understood even a legal amount of cannabis had been grown in them

O More than half of homeowners — 57 percent – believed that growing even the legal amount of cannabis (up to four plants under the Cannabis Act), could have a negative impact on a home’s worth. 26 per cent disagree and 18 per cent were neutral.

O   61 percent of Canadians agree taxpayers should not be able to smoke cannabis within their units

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Overall, the study found that the younger the generation, the more open they are to cannabis.

O   “52% of respondents said they’d be less inclined to consider specific homes for sale if they understood even a legal amount of cannabis had been grown in them.

But to millennials, it wasn’t that big of a deal- 62 percent of millennials said it wouldn’t decrease their desire to buy the property. It was the complete opposite for Gen Xers and Boomers with 58% and 59%, respectively, stating it would be a problem for them.

In regards to living near a dispensary, just under a third of millennials believed that land values could be negatively impacted compared to 50% of Gen Xers and 47 percent of Boomers, according to the report.

House Cultivation

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It also seems like there is a lingering stigma about growing cannabis at home, which stems from the negative coverage of “grow-ops” that were reported in the media from the 90’s until now, since the study found that:

O  52% of respondents say that they ’d be less inclined to consider Certain homes for sale if they understood even a legal amount of cannabis had been grown in them

But 4 plants do not equal a grow-op, and some feel that real estate organizations are fearmongering and blowing the entire issue of developing at home out of proportion, especially considering that Canadians are only allowed to develop a max of 4 plants.

“The history [of home damage] has been based on grow-ops, where you’re growing hundreds of plants and generating hundreds of litres of water. With four plants? Nah. ”

The entire report from Zoocasa is available here.

Images used in this article courtesy of Zoocasa.

Sources

CBC: Will it damage my house and other questions about developing legal cannabis

Government of BC: Cannabis.

Vancouver Sun: BC Supreme Court orders Zoocasa to pay $32,000 to real estate agents for breaching web site’s terms of use.

Zoocasa: A Joint Issue: How Canadian Homeowners and Renters Really Feel About Legal Cannabis [REPORT].

Released at Mon, 29 Oct 2018 03:37:33 +0000

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