According to a Real Estate Special Report by CNN Money, the housing market in Denver is absolutely on fire—and it’s due to Colorado’s legalization of recreational marijuana in 2012.
“Home prices have shot up by double-digits, inventory has fallen dramatically and multiple offers with bidding wars have become common,” the report stated. “In March, Denver experienced the second-largest jump in annual home prices at 10 percent, just behind San Francisco, according to the S&P/Case-Shiller Home Price Index.”
CNN Money pointed out that pot isn’t the only force driving the market, but legalization has created massive job growth, bringing a flood of people to the area.
“The pot industry is creating jobs we didn’t have before,” Kelly Moye, a Re/Max real estate agent in Denver, explained. “It’s brand new, it adds a whole new factor to the area; you have real estate needs, housing needs, job needs.”
Of course the boom isn’t great for everyone. First-time buyers and those trying to avoid the skyrocketing prices face stiff market competition. Denver’s normal housing market has around 24,000 listings—but according to Moye, right now, there are only around 4,000.
Moye predicts that the market has room to run for five to seven years, “barring any major economic disasters.”
You can read the full report from CNN Money HERE.