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The pot effect on Denver's housing market


Noelle New Headshot Fmt Headshot

Denver's housing market is on fire.

Home prices have shot up by double-digits, inventory has fallen dramatically and multiple offers with bidding wars have become common.

One factor driving the demand: pot. The budding industry has impacted home prices since the state legalized marijuana in 2012.

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"There has been a huge bump in real estate prices due to the legalization of marijuana," according to James Paine, managing partner at West Realty Advisors. "It's massively pushed up raw land and industry prices."

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In March, Denver experienced the second-largest jump in annual home prices at 10%, just behind San Francisco, according to the S&P/Case-Shiller Home Price Index.

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